Does Body20 require franchisees to purchase merchant processing services from a specific vendor?
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 purchase merchant processing services from a vendor that Body20, its affiliates, or an approved or designated vendor specifies. This means Body20 has the right to mandate that franchisees use a particular payment processor for all credit card transactions at their studio.
This payment processor will handle all credit card payments related to the Body20 studio. The processor will then remit the monies owed to the franchisee after deducting any operating fees, such as Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees, that are payable to Body20, as well as any payment processing fees charged by the processor itself.
This requirement ensures that Body20 can maintain control over the payment processing system and automatically collect its fees. While this may streamline operations and ensure compliance with Body20's standards, franchisees should carefully evaluate the payment processing fees charged by the designated vendor to ensure they are competitive and reasonable. Franchisees should also inquire about the potential for negotiating these fees or using an alternative vendor if the designated vendor's fees are too high.