Are there any penalties for late payments of Body20 Royalty or Brand Fund Fees?
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. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
The 2025 Body20 Franchise Disclosure Document does not explicitly state any penalties for late payments of Royalty Fees or Brand Fund Fees. However, it does state that Body20 may exercise their right to manage your studio after a default.
The Royalty Fee is 8% of the studio's gross sales and is due weekly by the 5th of each month. The Brand Fund Fee is currently 2% of gross sales, and Body20 may increase it up to 4%. The Marketing Spending Requirement is $1,500 per month. The Technology Fee is currently $1,060 per month.
A prospective Body20 franchisee should inquire about the specific penalties, interest, or late fees associated with failing to make timely payments of the Royalty Fee, Brand Fund Fee, or other fees. It is important to understand the consequences of late payments to avoid potential defaults or other issues with the franchisor.