Is the Royalty Fee paid to Body20 refundable?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2 Royalty Fee.
(a) Amount of Royalty Fee. You must pay us a weekly royalty fee (the "Royalty Fee") equal to 8% of your Gross Sales (as defined in Section 3.2(b)) for the previous week. The Royalty Fee is non-refundable and is paid in consideration of the ongoing right to use
the Marks and the System in accordance with this Agreement and not in exchange for services rendered by us.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Royalty Fee is non-refundable. The document specifies that franchisees must pay a weekly Royalty Fee, calculated as 8% of Gross Sales from the previous week. This fee is paid for the ongoing right to use Body20's Marks and System, not in exchange for specific services rendered by the franchisor.
This non-refundable policy means that once a Body20 franchisee pays the Royalty Fee, it will not be returned under any circumstances. This holds true regardless of the franchisee's performance, satisfaction with Body20's services, or any other factors. Franchisees should factor this into their financial planning and ensure they can consistently meet this obligation.
In the event that Body20 overestimates any fees due, the document outlines that the overestimation will be credited against fees due in the next payment period after Body20 receives accurate records regarding the franchisee's Gross Sales. This credit mechanism provides a way for Body20 to reconcile any overpayments, but it does not change the fundamental non-refundable nature of the Royalty Fee itself.