What is the maximum late fee that Body20 can charge per week after providing written notice?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
nt 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 can charge a late fee. Initially, this late fee is set at $100 for each week the payment is overdue.
However, Body20 retains the right to increase this late fee. To do so, Body20 must provide the franchisee with 60 days' prior written notice before implementing the increase.
The maximum late fee that Body20 can charge, even after providing written notice, is $250 per week. The FDD also clarifies that the imposition of late fees does not obligate Body20 to accept late payments, and any late payments constitute a default under the Franchise Agreement.