What is the maximum fee Body20 or its affiliates can charge for merchant processing services?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require you to purchase merchant processing services from us, our Affiliates, or a vendor that we have approved or designated, provided that if you purchase the services from us or our Affiliates, the fee will not exceed 115% of our and our Affiliates' costs and expenses.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees may be required to purchase merchant processing services from Body20, its affiliates, or an approved vendor. If a franchisee purchases these services directly from Body20 or its affiliates, the fee charged will not exceed 115% of Body20's and its affiliates' costs and expenses.
This means that Body20 franchisees could be obligated to use Body20's or its affiliates' merchant processing services. While Body20 allows for the use of an approved vendor, it retains the right to profit from these services, marking them up to 15% above their own costs.
For a prospective Body20 franchisee, this could mean higher costs for merchant processing compared to what they might find on the open market. It is important to factor this potential markup into the overall cost of running the franchise. Franchisees should inquire about the typical costs and expenses associated with these services to fully understand the financial implications.