Can the Body20 franchisor change the due date for the Brand Fund Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
orm for all franchisees and must be paid in a lump sum.
ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Brand Fund Fee is currently set at 2% of the studio's gross sales, with the due date being the same as the Royalty Fee, referred to as the "Payment Due Date". The document does not explicitly state whether Body20 can unilaterally change the due date for the Brand Fund Fee. However, it does state that Body20 may increase the Brand Fund Fee up to 4% of the Gross Sales of the Studio.
While the FDD specifies that Body20 can increase the amount of the Brand Fund Fee, it remains silent on the ability to alter the due date. Franchise agreements typically grant franchisors some flexibility in operational matters, but significant changes often require franchisee consent or adherence to specific protocols outlined in the agreement.
A prospective Body20 franchisee should seek clarification from the franchisor regarding their ability to change the due date for the Brand Fund Fee. Understanding the conditions under which such changes can be made is crucial for financial planning and managing cash flow. It would also be prudent to discuss whether changes to the due date would be applied uniformly to all franchisees or could vary.