factual

What is the Body20 franchise fee per studio if I commit to developing ten or more studios?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

gle Studio is $65,000 and is due upon execution of the Franchise Agreement. If we determine that you are financially and operationally qualified to develop multiple Studios, we may offer you the opportunity to enter into a Development Agreement, under which you will commit to develop a certain number of Studios that you and we consider appropriate. If you enter into a Development Agreement, the Franchise Fee will vary based on the number of Studios that you commit to develop. If you commit to develop between three and five Studios, the Franchise Fee will be $55,000 per Studio. If you commit to develop between six and nine Studios, the Franchise Fee will be $45,000 per Studio. If you commit to develop ten or more Studios, the Franchise Fee will be $35,000 per studio.

In 2024, Predecessor collected Franchise Fees ranging from $45,000 to $65,000.

Development Fee. If you enter into a Development Agreement, you must pay us, upon signing the Development Agreement, a development fee equal to 100% of the aggregate of all of the Franchise Fees due for each Studio that you agree to develop (the "Development Fee"). The Development Fee will range between $165,000 to $350,000 if you commit to develop between three to 10 Studios.

Source: Item 5 — INITIAL FEES (FDD pages 17–19)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, the franchise fee varies depending on the number of studios a franchisee commits to develop under a Development Agreement. If a prospective franchisee commits to developing ten or more Body20 studios, the franchise fee is $35,000 per studio. This is a discount compared to the franchise fee for a single studio, which is $65,000.

This tiered franchise fee structure incentivizes franchisees to commit to a larger development plan, allowing Body20 to expand more rapidly. The franchisee benefits from a reduced initial investment per studio, making it potentially more affordable to open multiple locations. However, the franchisee must be financially and operationally qualified to develop multiple studios, as determined by Body20.

In addition to the franchise fee, franchisees entering into a Development Agreement must also pay a Development Fee upon signing the agreement. This fee is equal to 100% of the aggregate of all franchise fees due for each studio the franchisee agrees to develop. This Development Fee is credited towards the franchise fee due for each studio developed under the Development Agreement, meaning no additional franchise fee is due when each individual Franchise Agreement is signed.

For example, if a franchisee commits to developing ten studios, the Development Fee would be $350,000 (10 studios x $35,000 per studio). This entire amount is paid upfront but covers the franchise fees for all ten studios as they are developed. This structure lowers the per-studio franchise fee but requires a substantial initial capital outlay.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.