Are there any other fees besides the Royalty Fee and Brand Fund Fee for Body20?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
orm for all franchisees and must be paid in a lump sum.
ITEM 6 OTHER FEES
OTHER FEES (Note 1)
| 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. |
| Brand Fund Fee | Currently, 2% of Gross Sales of the Studio. | The Payment Due Date | We have established and administer a Brand Fund and require you to contribute the Brand Fund Fee. We may increase the fee up to 4% of the Gross Sales of the Studio. See Note 2 for the definition of Gross Sales. |
| Marketing Spending Requirement | $1,500 per month | The Payment Due Date | You must spend the Marketing Spending Requirement on local advertising and promotional activities. Alternatively, we may require you to pay us the Marketing Spending Requirement, which we will use to conduct local advertising and promotional activities for your Studio on your behalf in a manner that we determine in our sole discretion. |
| Technology Fee | Currently, $1,060 per month. | The Payment Due Date. | The Technology Fee currently includes fees for various technology services that we will provide or arrange for third parties to provide, such as Studio systems, software and programming fees for electromagnetic stimulation suits, email services, and our intranet. We may add, delete, or otherwise modify the products and services that are included in the Technology Fee. You will begin paying the Technology Fee during your presale period, which will start three months prior to your opening date. We may increase the Technology Fee from time to time, provided that it will not exceed the greater of $2,500 per month or 2% of the Gross Sales of the Studio. The Technology Fee is in addition to any technology-related fees that you may be required to pay directly to vendors. |
| Training Fee for Trainees Attending Subsequent | Currently, $500 per trainee per day. | Within 10 days of receipt of an invoice | As stated in Item 5, there is no charge for your initial Required Trainees to attend our initial training program as long as they are all trained at the same time. We reserve the |
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, in addition to the Royalty Fee and Brand Fund Fee, franchisees may be subject to several other fees. These include a Marketing Spending Requirement of $1,500 per month, which can be spent on local advertising or paid to Body20 for them to conduct advertising on the franchisee's behalf. There is also a Technology Fee, currently $1,060 per month, covering various technology services, which may increase to a maximum of $2,500 per month or 2% of Gross Sales. This fee begins during the presale period, three months before the studio opens.
Further fees may include a Training Fee for trainees attending subsequent training, set at $500 per trainee per day. A Management Fee of 10% of the Studio's Gross Sales, plus any direct out-of-pocket costs, is applicable if Body20 manages the studio due to franchisee default, incapacitation, or at the franchisee's request. Franchisees may also face Indemnification costs covering liabilities, losses, and legal expenses resulting from breaches of the Franchise Agreement or other actions related to the studio.
Additional potential fees include De-Identification Expenses, which could be up to 120% of Body20's costs to de-identify a studio if the franchisee fails to do so upon termination or expiration of the agreement. Liquidated Damages may also be imposed if the Franchise Agreement is terminated after the studio opens, calculated based on the average monthly Royalty Fee multiplied by the remaining term or 36 months, whichever is less. Finally, franchisees may be responsible for Attorneys' Fees and Costs incurred by Body20 in enforcing the Franchise Agreement or defending against franchisee claims.
Prospective Body20 franchisees should carefully consider these additional fees, as they can significantly impact the overall cost of operating the franchise. Understanding the conditions under which these fees are charged is crucial for financial planning and risk assessment. Franchisees should also be aware that these fees are generally non-refundable and must be paid using the methods designated by Body20.