What fees can a payment processor withhold from a Body20 franchisee's payments?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require you to purchase merchant processing services from us, our affiliates or an approved or designated vendor. The payment processor may process all credit card payments related to your Studio and remit payment to you of all monies owed, after withholding any Operating Fees (i.e., Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees) payable to us and any payment processing fees payable to the processor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 franchisees may be required to utilize a payment processor designated or approved by Body20 or its affiliates. This payment processor handles all credit card transactions for the Body20 studio. After processing payments, the processor remits the remaining funds to the franchisee. However, before doing so, the payment processor is authorized to withhold certain fees.
The payment processor can deduct Operating Fees, which include Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees. These fees are payable directly to Body20. Additionally, the payment processor can withhold its own payment processing fees. These fees cover the cost of the payment processing services themselves.
This arrangement ensures that Body20 receives its due fees directly from the payment processor, streamlining the payment process for franchisees. However, it is crucial for prospective Body20 franchisees to understand the amounts and schedules for these fees to accurately manage their finances. Franchisees should clarify with Body20 the specific rates for both the operating fees and the payment processing fees to fully understand the financial implications.