If the Body20 Development Agreement is terminated, what happens to the Development Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement for any other reason whatsoever, we will retain the Development Fee and you will not be relieved of any of your obligations, debts, or liabilities hereunder, including, without limitation, any debts, obligations, or liabilities which have accrued prior to such termination.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if the Development Agreement is terminated for any reason, Body20 will retain the Development Fee. The franchisee will not be relieved of any obligations, debts, or liabilities, including those accrued before the termination.
The Development Fee is specified in Item 2.2 of the FDD, stating that upon execution of the Development Agreement, the franchisee must pay Body20 a fee, which is equal to 100% of the aggregate of all of the Franchise Fees due for the Studios that the franchisee commits to develop under the agreement.
This means that a prospective Body20 franchisee should be aware that the Development Fee is non-refundable, even if they do not develop the Studios according to the agreed-upon Development Schedule. This is a significant financial risk, as the franchisee could lose the entire Development Fee if the agreement is terminated, regardless of the reason for termination.