Does Body20 require franchisees to purchase payment processing services from suppliers or service providers that Body20 has designated or approved?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
eserve the right to designate us or our affiliates as approved or required suppliers of other goods or services in the future.
Currently, we require you to purchase from suppliers or service providers that we have designated or approved (i) certain other equipment and supplies, (ii) interior graphics and exterior signage, (iii) the Technology System, (iv) music licenses, and (v) payment processing services. We may require you to purchase other goods or services from approved or designated supplies or services providers in the future.
When you develop and construct your Studio, we have the right to require you to obtain our prior written approval of any project managers, architects, engineers, or designers that you would like to use before you engage them.
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, franchisees are required to purchase payment processing services from suppliers or service providers that Body20 has designated or approved. Body20 may also require franchisees to purchase merchant processing services from Body20, its affiliates, or an approved or designated vendor. The payment processor may handle all credit card payments related to the Body20 studio and remit the monies owed to the franchisee after deducting operating fees, such as Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees, as well as any payment processing fees.
Body20 maintains the right to mandate that franchisees acquire furniture, fixtures, signs, equipment, products, supplies, and services from approved suppliers or service providers. This includes the option to designate a single source, which could be Body20 itself, its affiliates, or a buying cooperative. Franchisees must also offer only the products, services, and sessions approved by Body20 in writing and adhere to the specific offerings required in the manuals or other written communications.
Currently, Body20 requires franchisees to purchase certain equipment and supplies, interior graphics and exterior signage, the Technology System, music licenses, and payment processing services from designated or approved suppliers or service providers. If a franchisee wishes to use a non-approved supplier, they must seek written approval from Body20, which may involve inspections, testing, and associated costs. Body20 estimates that the cost to purchase and lease all equipment, inventory and other items and services that they require franchisees to obtain from them or their affiliates, from designated suppliers, or in accordance with their specifications ranges from 75% to 90% of the total cost to purchase and lease equipment, inventory, and other items necessary 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.