What Operating Fees can a payment processor withhold from Body20 franchisee payments?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require you to purchase merchant processing services from us, our affiliates or an approved or designated vendor. The payment processor may process all credit card payments related to your Studio and remit payment to you of all monies owed, after withholding any Operating Fees (i.e., Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees) payable to us and any payment processing fees payable to the processor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 franchisees may be required to use a payment processor designated or approved by Body20 or its affiliates. This payment processor handles all credit card transactions for the Body20 studio.
The payment processor is authorized to remit payments to the franchisee after deducting specific operating fees. These operating fees include Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees. Additionally, the payment processor will also deduct its own payment processing fees before remitting the balance to the Body20 franchisee.
This arrangement ensures that Body20 receives its due fees directly from the payment processor, streamlining the payment process for both the franchisee and the franchisor. Franchisees should factor these deductions into their financial planning and understand the amounts and schedules for each fee to accurately forecast their revenue.