Where can I find information about the Body20 Development Fee, its application, and non-refundability?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Fees.
- 2.1 Franchise Fee. For each Studio that you develop pursuant to this Agreement, the initial franchise fee due under the applicable Franchise Agreement (the "Franchise Fee") for such Studio will be specified in Appendix A.
- 2.2 Development Fee. Upon execution of this Agreement, you must pay us a development fee in the amount specified on Appendix A (the "Development Fee"), which will be equal to 100% of the aggregate of all of the Franchise Fees due for the Studios that you commit to develop under this Agreement.
- 2.3 Application of Fee and Non-refundability. The Development Fee will be credited towards the Franchise Fee due for each Studio that you develop pursuant to this Agreement. Thus, there shall be no additional Franchise Fee due under each Franchise Agreement signed pursuant to this Development Agreement. The Development Fee is fully earned by us when we and you sign this Agreement and is non-refundable, even if you do not develop Studios in accordance with the Development Schedule.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, details regarding the Development Fee, its application, and non-refundability are specified within the context of a Development Agreement. If a franchisee commits to developing multiple Body20 studios, they must pay a Development Fee. This fee is equal to 100% of the total Franchise Fees for all studios the franchisee commits to develop under the agreement. The specific amount of both the Development Fee and the individual Franchise Fees are listed in Appendix A.
The Development Fee is applied as a credit towards the Franchise Fee due for each Body20 studio developed under the Development Agreement. This means that no additional Franchise Fee is required for each subsequent studio opened under the Development Agreement. The Development Fee is considered fully earned by Body20 upon signing the Development Agreement, and it is explicitly non-refundable. This non-refundability applies even if the franchisee fails to develop the studios according to the agreed-upon development schedule.
Prospective Body20 franchisees should carefully consider the implications of the Development Fee's non-refundable nature. If plans change and the franchisee is unable to open all the committed studios, they will not receive a refund of the Development Fee. It is important to review Appendix A of the Franchise Agreement and the Development Agreement to understand the specific fees involved and the development schedule required. Franchisees should also assess their financial capabilities and commitment to developing multiple studios before entering into a Development Agreement with Body20.