When is the Body20 Royalty Fee due?
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. |
NOTES:
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- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Royalty Fee is currently due weekly by the 5th of each month, referred to as the "Payment Due Date." The royalty is 8% of the Gross Sales of the studio. Gross Sales includes all revenue derived from operating the studio, whether from cash, credit, or other transactions, and includes proceeds from business interruption insurance.
It is important to note that the definition of Gross Sales does not allow for deductions of payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation. This means Body20 franchisees must calculate their royalty payments on the total revenue before deducting these fees, which can impact the overall amount owed.
Understanding the due dates and calculation of the Royalty Fee is crucial for managing the financial obligations of a Body20 franchise. Franchisees should ensure they have systems in place to accurately track Gross Sales and remit the royalty payments on time to avoid potential penalties or breaches of the franchise agreement.