What is the standard late fee charged by Body20 for payments made after the due date?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
nt based on our estimate, plus 20% of our estimate. If we underestimate any fees due, you will remain obligated to pay the total amount of fees due, which, if we institute an automatic debit program, we may debit from your account automatically. If we overestimate any fees due, we will credit the fees paid (without interest) against fees due in the next payment period after we receive accurate records regarding your Gross Sales.
- 3.17 Interest; Late Fee. If any payment due to us is not received in full by the due date, you agree to pay us daily interest on the amount owed, calculated from the due date until paid, at the rate of 18% per annum (or
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, Body20 charges a late fee of $100 for each week the payment is late. In addition to the late fee, Body20 also charges daily interest on the outstanding amount from the due date until the payment is made. The interest rate is 18% per annum, or the maximum rate permitted by law if it is less than 18%.
It's important to note that Body20 can increase the late fee with 60 days' prior written notice, but it will not exceed $250 per week. The FDD emphasizes that Body20's acceptance of late payments does not mean they are obligated to do so, and any late payments constitute a default under the Franchise Agreement.
This policy highlights the importance of franchisees making timely payments to Body20 to avoid incurring additional fees and interest charges. Franchisees should ensure they have sufficient funds available and adhere to the payment methods specified by Body20 to prevent late payments and potential defaults under the agreement.