What interest rate will Body20 charge on late payments?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
drawal from your bank account based on our estimate, plus 20% of our estimate. If we underestimate any fees due, you will remain obligated to pay the total amount of fees due, which, if we institute an automatic debit program, we may debit from your account automatically. If we overestimate any fees due, we will credit the fees paid (without interest) against fees due in the next payment period after we receive accurate records regarding your Gross Sales.
- 3.17 Interest; Late Fee. If any payment due to us is not received in full by the due date, you agree to pay us daily interest on the amount owed, calculated from the due date until paid, at the rate of 18% per annum (or
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, Body20 will charge daily interest on the outstanding amount. This interest is calculated from the due date until the payment is made. The interest rate is set at 18% per annum, but if the maximum rate permitted by law is less than 18%, the legally allowed maximum rate will be applied instead.
In addition to interest, Body20 also imposes a late fee of $100 for each week that a payment is late. This late fee can be increased, but Body20 must provide 60 days' prior written notice before doing so. The maximum late fee will not exceed $250 per week.
The FDD clarifies that the imposition of interest and late fees does not obligate Body20 to accept late payments. Any late payments constitute a default under the Franchise Agreement. This means that Body20 retains the right to pursue other remedies for breach of contract, in addition to charging interest and late fees.