What is the range of the Body20 Development Fee based on the number of studios a developer commits to?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is Made | |
|---|---|---|---|---|---|---|
| Development Fee (1) | $165,000 | $350,000 | Lump sum | When you sign Development Agreement | Us | |
| Estimated Initial Investment for First Studio (2) | $200,512 | $362,833 | As incurred | As incurred | Us and third parties | |
| TOTAL (3) | $365,512 | $712,833 | #### Notes: |
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- Development Fee. Upon signing the Development Agreement, you must pay us the Development Fee. The Development Fee varies based on the number of Studios you commit to develop. The low estimate is based on a commitment to develop three Studios (in which case the Franchise Fee under each Franchise Agreement would be $55,000 per studio) and the high estimate is based on a commitment to develop 10 Studios (in which case the Franchise Fee under each Franchise Agreement would be $35,000 per studio). The Development Fee will be credited towards the initial F
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Development Fee ranges from $165,000 to $350,000. This fee is determined by the number of Body20 studios a developer commits to opening under a Development Agreement. The lower end of the estimate, $165,000, applies when a developer commits to opening three studios. In this scenario, the franchise fee for each studio would be $55,000. The higher end of the estimate, $350,000, applies when the developer commits to opening ten studios, which reduces the franchise fee for each studio to $35,000.
The Development Fee is paid upon signing the Development Agreement and is credited towards the initial franchise fee for each studio developed under the agreement. This means that while the developer pays the Development Fee upfront, it effectively serves as a pre-payment for the franchise fees of the individual studios. It is important to note that the Development Fee is non-refundable, regardless of whether all the committed studios are eventually opened.
For prospective Body20 developers, this fee structure incentivizes committing to a larger number of studios, as it reduces the per-studio franchise fee. However, it also represents a significant upfront investment and risk, as the entire Development Fee is non-refundable. Developers should carefully consider their ability to successfully open and operate the committed number of studios before entering into a Development Agreement with Body20. This type of tiered fee structure is common in franchising to encourage multi-unit development.