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Are there any exceptions to the Body20 Royalty Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | 10% of the Studio's Gross Sales during the management period, plus any direct out of pocket costs and expenses relating to the Studio's management. | Within 10 days of receipt of an invoice | Payable if we exercise our right to manage your Studio after a default, the death or incapacitation of the Operating Principal, or the departure of a Designated Manager or if we agree to manage your Studio at your request. |
| Indemnification | Amount of our (and other indemnified parties') liabilities, losses, damages, costs, expenses, and reasonable defense costs (including attorneys' fees). | Upon demand | Payable if we (or other indemnified parties) incur losses due to your breach of the Franchise Agreement, any other action or inaction by you or any other person relating to your Studio, or the Development Agreement. |
| De Identification Expenses | Up to 120% of our and our affiliates' costs and expenses related de identifying your Studio. | Upon demand | Payable if your Franchise Agreement expires or is terminated, you fail to de identify your Studio, and we take steps to do so. |
| Liquidated Damages | The average monthly Royalty Fee you owed us during the 12 months prior to termination (or, if the Studio has then been open and operating less than 12 months, the average monthly Royalty Fee during the period in which the Studio was open and operating) multiplied by the lesser of (a) the number of months then remaining in the Term, or (b) 36. | Upon demand | Payable to us if the Franchise Agreement is terminated after the Studio opens. |
[Item 6: OTHER FEES]
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Initial Training Programs (3) | right to charge a training fee for each person who attends a subsequent Initial Training program, including (a) each person who is repeating the program (whether pre-opening or during the term of the Franchise Agreement as a refresher training program) or replacing a person who did not pass, and (b) each subsequent Operating Principal, Designated Manager, or employee who attends the program. (If, however, we elect, in our sole discretion to provide Initial Training to your Required Trainees at your Studio, you must pay us an additional training fee of up to $1,000 (currently, $500) per trainer per day, plus their travel and living expenses.) We may increase the fee from time to time, provided it will not exceed $1,000 per trainee per day. | ||
| Fee for Optional Additional Training Programs (3) | Varies based on program. | Within 10 days of receipt of an invoice | There will be no charge for training programs that we require you or your employees to attend, except for third-party training or certification programs that we require your fitness coaches or other employees to attend and complete and the Initial Training and Coach Onboarding discussed above. We may, however, charge you a reasonable fee for optional training programs, which will not exceed $3,000 per attendee per program. |
| Fee for Remedial Training (3) | Currently, $500 per trainer per day, plus their travel and living expenses. | Within 10 days of receipt of an invoice | If, in our sole judgment, you fail to maintain our standards, we may, in addition to all of our other rights and remedies under the Franchise Agreement, assign trainers to the Studio to retrain Studio employees and restore service levels and/or require you or your employees to repeat Initial Training or attend additional training programs at a location that we designate. We may increase the fee from time to time, provided it will not exceed $1,000 per trainer per day. |
| In-Person Consulting Services (3) | Currently, $500 for each of our employees or agents for each full or partial day, plus their travel and living expenses. | Within 10 days of receipt of an invoice | Payable if we provide requested consulting services in person at a place other than our offices. We may increase the fee from time to time, provided it will not exceed $1,000 per trainer per day. |
| Type of Fee | Amount | Due Date | Remarks |
| ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Coach Onboarding Fee | Currently, $125 for each fitness coach attending Coach Onboarding, plus up to an additional $1,000 if a coach requires additional training | Within 10 days of receipt of an invoice | As stated in Item 5, before providing any fitness coaching at the Studio and every two years thereafter, each of your fitness coaches must attend our Coach Onboarding. Certain coaches may require additional practice, coaching, or follow-up instruction, depending on comprehension and readiness, which will incur an additional fee. Your costs may also increase if we, at your request, provide Coach Onboarding at your Studio or if any of your coaches attends Coaching Onboarding at another Studio. You also are responsible for the travel and living expenses of your coaches while attending Coach Onboarding. We may increase these fees from time to time; however, they will not exceed $500 per coach, plus up to $2,000 for any coach requiring additional training. |
| Mandatory Meetings and Conferences | Reasonable registration fee for you and any employees who attend, which will not exceed $1,000 per person. | Prior to attending the event | Payable for you and your employees who attend any franchise conventions, meetings, product shows or demonstrations, and teleconferences that we may periodically require, which may be held in-person or remotely. The registration fee may vary from event to event based on the costs and expenses we expect to incur, the vendor contributions we expect to collect, and the number of franchisees we expect to attend. If you or any of your representatives do not attend any mandatory events, regardless of the reason, you must pay us, for each absent required attendee, the applicable registration fee, plus $500, unless we have previously excused in writing the absence. You are responsible for the travel and living expenses of you and your employees. |
| Music Licensing Fee | The amount charged to us or our affiliates by providers or music clearing houses, plus an administrative fee of up to 5% of such amount. | As arranged | Payable for a license to play music and playlists in the Studio. We may require you to pay the Music Licensing Fee directly to our approved supplier, or we or our affiliates may collect the Music Licensing Fee. |
| Payment Processing Fee | A reasonable monthly fee plus a reasonable per transaction charge. | Upon de |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
Based on the 2025 Body20 Franchise Disclosure Document, there are no explicit exceptions to the standard royalty fee outlined in the provided Item 6 excerpts. The document details various other fees a franchisee might encounter, such as management fees, indemnification, de-identification expenses, liquidated damages, and training-related fees. However, it does not specify any conditions under which the standard royalty fee would be waived or reduced.
Several fees are contingent upon specific circumstances. For instance, the management fee, set at 10% of the studio's gross sales plus expenses, is only payable if Body20 exercises its right to manage the studio due to franchisee default, incapacitation, or departure of a manager. Similarly, liquidated damages, calculated based on the average monthly royalty fee, are payable if the Franchise Agreement is terminated after the studio opens. These fees are triggered by particular events or actions, rather than representing exceptions to the standard royalty.
The absence of explicit royalty fee exceptions in Item 6 suggests that Body20 franchisees are generally expected to pay the standard royalty fee consistently. Prospective franchisees should clarify with Body20's franchise representatives whether any unwritten policies or special circumstances might affect royalty fee obligations. Understanding the full scope of potential fees and any possible exceptions is crucial for accurate financial planning and risk assessment before investing in a Body20 franchise.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.