What are the 'Operating Fees' that Body20 franchisees must pay?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee**.** You must pay us an initial franchise fee as set forth in Appendix A (the "Franchise Fee") upon execution of this Agreement. The initial Franchise Fee is paid in consideration of the rights granted in Section 1 (Rights Granted) and will be deemed fully earned at the time paid. You acknowledge that we have no obligation to refund the Franchise Fee, in whole or in part, for any reason.
3.2 Royalty Fee.
(a) Amount of Royalty Fee. You must pay us a weekly royalty fee (the "Royalty Fee") equal to 8% of your Gross Sales (as defined in Section 3.2(b)) for the previous week. The Royalty Fee is non-refundable and is paid in consideration of the ongoing right to use
the Marks and the System in accordance with this Agreement and not in exchange for services rendered by us.
- (b) Gross Sales. "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
- 3.3 Brand Fund Fee.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees must pay several ongoing fees during the operation of their franchise. The primary operating fee is the Royalty Fee, which is 8% of the studio's Gross Sales, paid weekly. Gross Sales includes all revenue derived from the studio's operation, whether from cash, credit, or other transactions, but excludes bona fide returns, credits, and sales taxes collected and remitted to the appropriate taxing authority.
In addition to the Royalty Fee, Body20 franchisees must pay a Technology Fee. As of the Effective Date of the franchise agreement, this fee is $1,060 per month. However, Body20 reserves the right to change this fee with 30 days' written notice, with the fee not exceeding the greater of $2,500 per month or 2% of the franchisee's Gross Sales. Franchisees may also incur costs for attending mandatory franchise conventions, meetings, product shows, or teleconferences, including travel, living expenses, and potentially a registration fee not exceeding $1,000 per attendee. Failure to attend these events without prior written excuse may result in a penalty equal to the registration fee plus $500 for each absence.
Furthermore, if Body20 establishes a Franchisee Advisory Council, franchisees must participate in council-related activities and meetings and pay any dues related to the council's administration. These various fees and potential costs represent the ongoing financial obligations a franchisee must meet to maintain their Body20 franchise. It is important for prospective franchisees to consider these expenses when evaluating the financial viability of the franchise opportunity.