How often are the Body20 Royalty Fee and Brand Fund Fee payments due?

According to Body20's 2025 Franchise Disclosure Document, both the Royalty Fee and the Brand Fund Fee are currently due weekly by the 5th of each month, referred to as the "Payment Due Date." The Royalty Fee is 8% of the Gross Sales of the studio. The Brand Fund Fee is currently 2% of Gross Sales, and Body20 retains the right to increase this fee up to 4% of Gross Sales. Gross Sales includes all revenue derived from operating the studio, whether from cash, credit, or other transactions, but excludes bona fide returns, credits, and sales taxes collected and remitted to the appropriate taxing authority. Franchisees are not allowed to deduct payment provider fees from their Gross Sales calculation.

This weekly payment schedule means that Body20 franchisees must closely monitor their sales and ensure they have sufficient cash flow to meet these obligations. The fees are calculated as a percentage of gross sales, providing a direct correlation between revenue and fee obligations. This arrangement is typical in franchising, where royalties and brand fund contributions are often calculated as a percentage of revenue.

The fact that Body20 may increase the Brand Fund Fee up to 4% of Gross Sales is an important consideration for prospective franchisees. While the current rate is 2%, franchisees should be prepared for a potential increase, which would impact their profitability. Understanding what the Brand Fund supports and how it benefits franchisees is crucial. Franchisees should also clarify with Body20 the conditions under which such an increase would be implemented.

Overall, the weekly payment schedule for the Royalty Fee and Brand Fund Fee requires diligent financial management on the part of the Body20 franchisee. The potential for an increase in the Brand Fund Fee adds an element of uncertainty that prospective franchisees should carefully evaluate.