When does a Body20 franchisee begin paying the Technology Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
- 3.3 Brand Fund Fee. You must contribute weekly an amount that we specify from time to time in our sole discretion, which will not exceed 4% of your Gross Sales (the "Brand Fund Fee") to a fund dedicated to activities we believe would benefit the Brand or the Studios generally (the "Brand Fund").
- 3.4 Technology Fee. Beginning three months prior to the opening of your Studio, you must pay to us, or a third party that we designate, a technology fee for various technology services that we will provide
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee must begin paying the Technology Fee three months prior to the opening of their studio. This fee is for various technology services that Body20 will provide or arrange for third parties to provide, and these services are subject to change over time. As of the Effective Date of the franchise agreement, the Technology Fee is detailed in Appendix A.
The FDD also states that Body20 reserves the right to change the Technology Fee. They will provide written notice of any changes at least 30 days before the new fee amount is implemented. However, the Technology Fee will not exceed the greater of $1,200 per month or 2% of the franchisee's Gross Sales.
This fee structure is fairly typical in the franchise industry, where technology is a crucial component of business operations. Franchisees should budget for this expense starting three months before their studio opens and be aware that the fee may change over time, with adequate notice from Body20.