How is the Body20 Successor Fee calculated?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Successor Fee | 25% of the then-current franchise fee | Upon execution of successor franchise agreement | Payable if you are qualify for, and enter into, a successor term. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Successor Fee is calculated as 25% of the then-current franchise fee. This fee is payable if a franchisee qualifies for and enters into a successor term with Body20.
In practical terms, this means that if a franchisee decides to renew their franchise agreement for another term, they will need to pay a fee equivalent to 25% of whatever the standard franchise fee is at that time for new franchisees. For example, if the current franchise fee is $50,000 when the franchisee seeks a renewal, the Successor Fee would be $12,500 (25% of $50,000).
This fee is common in franchising and helps Body20 offset its costs associated with renewing the franchise agreement and ensuring the franchisee's continued compliance with the Body20 system. It is important for prospective franchisees to consider this fee when evaluating the long-term costs and profitability of a Body20 franchise.