Where in the Body20 Franchisee-Specific Terms is the Development Fee specified?
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.
3. Development Obligations.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the Development Fee is specified in Appendix A. Specifically, section 2.2 of the Development Agreement states that upon execution of the agreement, the franchisee must pay a development fee in the amount specified on Appendix A. This Development Fee will be equal to 100% of the aggregate of all Franchise Fees due for the Studios that the franchisee commits to develop under the agreement.
This fee is applied towards the Franchise Fee due for each studio developed under the agreement, meaning no additional Franchise Fee is due under each Franchise Agreement signed pursuant to the Development Agreement. Body20 Franchisor LLC fully earns the Development Fee when both parties sign the agreement, and it is non-refundable, even if the franchisee does not develop the studios according to the Development Schedule.
Appendix A to the Franchise Agreement is titled "FRANCHISEE-SPECIFIC TERMS" and includes items such as the Effective Date, Franchisee's Name, Franchisee's State of Organization, Ownership of Franchisee, Site Selection Area, Operating Principal, Designated Manager, Franchise Fee, Technology Fee, Initial FF&E Payment, Presale Kit Payment, Initial Retail Inventory Kit Payment, and Pre-Opening Membership Requirement.