What is the 'Payment Due Date' for Body20 fees?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 8% of the Gross Sales of the Studio. | Currently due weekly by the 5th of each month (the "Payment Due Date") | See Note 2 for the definition of Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the 'Payment Due Date' for the Royalty Fee is currently weekly by the 5th of each month. The Royalty Fee is 8% of the Gross Sales of the studio. Gross Sales are defined in Note 2 of the FDD.
It is important to note that while the Royalty Fee has a specific payment due date, other fees listed in Item 6 of the Body20 FDD, such as the Product, Service, Supplier, and Service Provider Review fee, Mystery Shopper Program fee, Relocation Fee, Inspection fee, Remedial Expenses, Non-Compliance Fee, and Insurance Procurement Fee, are due 'upon demand' or 'upon receipt of written notice'. This means franchisees must be prepared to make these payments promptly when requested by Body20.
Understanding the various fee structures and their respective due dates is crucial for prospective Body20 franchisees to manage their finances effectively. Being aware of when payments are expected helps in budgeting and avoiding late fees or potential breaches of the franchise agreement. Franchisees should carefully review Item 6 in its entirety to fully understand all potential fees and their payment terms.