Does the Body20 franchisor need franchisee approval to increase the Brand Fund Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 does not need franchisee approval to increase the Brand Fund Fee. The FDD states that Body20 may increase the Brand Fund Fee up to 4% of the Gross Sales of the Studio. The current Brand Fund Fee is 2% of Gross Sales.
This means that Body20 has the unilateral right to double the Brand Fund Fee without requiring the consent of its franchisees. This could significantly impact a franchisee's profitability, as it would increase their ongoing expenses. Gross Sales is defined as all revenue received from operating the studio, before deductions for payment provider fees or certain taxes.
Prospective franchisees should consider this potential increase when evaluating the Body20 franchise opportunity and carefully review the definition of Gross Sales to understand what revenue is subject to the Brand Fund Fee. It is important to factor in the maximum potential Brand Fund Fee of 4% when projecting potential earnings and expenses.