Can the Body20 franchisor change the due date for the Royalty 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. | The Payment Due Date | We have established and administer a Brand Fund and require you to contribute the Brand Fund Fee. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
| Marketing Spending Requirement | $1,500 per month | The Payment Due Date | You must spend the Marketing Spending Requirement on local advertising and promotional activities. Alternatively, we may require you to pay us the Marketing Spending Requirement, which we will use to conduct local advertising and promotional activities for your Studio on your behalf in a manner that we determine in our sole discretion. |
| Technology Fee | Currently, $1,060 per month. | The Payment Due Date. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Royalty Fee is currently due weekly by the 5th of each month, referred to as the "Payment Due Date." The FDD does not explicitly state whether Body20 has the right to change this due date.
However, the FDD does state that Body20 can modify other fees, such as the Technology Fee. They may add, delete, or otherwise modify the products and services included in the Technology Fee. They may also increase the Brand Fund Fee up to 4% of the Gross Sales of the Studio.
Since the FDD does not explicitly address whether the due date for the Royalty Fee can be changed, it would be prudent for a prospective franchisee to seek clarification from Body20 regarding their ability to alter the Royalty Fee's due date. Understanding the franchisor's rights to modify payment terms is essential for financial planning and managing cash flow as a franchisee.