Does Body20 receive any fees or commissions related to franchisee financing?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ry to establish a Studio and 30% to 45% of the total cost to purchase and lease equipment, inventory, and other items to operate a Studio.
Revenue from Purchases. We and/or our affiliates may derive revenue based on your purchases and leases, including from charging you for products and services we or our affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by suppliers and/or distributors that we designate or approve for some or all of our franchisees. We and our affiliates may use all amounts received from suppliers and/or distributors, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our affiliates consider appropriate. If you derive any revenue based on payments or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement, and such revenue will be included as part of your Gross Sales.
We have established arrangements with certain suppliers that require the supplier to make rebate payments to us equal to 5% to 30% of your total purchases for certain items. As we became the franchisor of the Brand in April 2025, in the
Source: Item 10 — FINANCING (FDD page 38)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether Body20 receives fees or commissions related to franchisee financing. The provided excerpts from the FDD do not contain any information about Body20 receiving fees or commissions for assisting franchisees in obtaining financing. The document does outline various fees payable to Body20, such as the Technology Fee of $1,060 per month and payments for the Presale Kit and Initial Retail Inventory Kit, each costing $6,000 plus shipping. However, none of these fees are explicitly linked to franchisee financing.
Item 8 discusses revenue that Body20 may derive from franchisee purchases and leases, including revenue from suppliers and distributors through promotional allowances, volume discounts, and other payments. It also mentions that Body20 has established arrangements with certain suppliers that require rebate payments to Body20 equal to 5% to 30% of the franchisee's total purchases for certain items. However, this revenue is tied to product and service purchases, not financing.
To fully understand whether Body20 receives any financial benefit from franchisee financing, a prospective franchisee should ask the franchisor directly about any such arrangements. Specifically, they should inquire whether Body20 receives any fees, commissions, or other forms of compensation from lenders or other financial institutions for referring franchisees or assisting them in securing financing. This information is crucial for making an informed investment decision.