Towards what is the Body20 Development Fee credited?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is Made | |
|---|---|---|---|---|---|---|
| Development Fee (1) | $165,000 | $350,000 | Lump sum | When you sign Development Agreement | Us | |
| Estimated Initial Investment for First Studio (2) | $200,512 | $362,833 | As incurred | As incurred | Us and third parties | |
| TOTAL (3) | $365,512 | $712,833 | #### Notes: |
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- Development Fee. Upon signing the Development Agreement, you must pay us the Development Fee. The Development Fee varies based on the number of Studios you commit to develop. The low estimate is based on a commitment to develop three Studios (in which case the Franchise Fee under each Franchise Agreement would be $55,000 per studio) and the high estimate is based on a commitment to develop 10 Studios (in which case the Franchise Fee under each Franchise Agreement would be $35,000 per studio). The Development Fee will be credited towards the initial F
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Development Fee is credited towards the initial Franchise Fee for each studio developed under the Development Agreement. The Development Fee is not refundable. The Development Fee varies based on the number of studios a franchisee commits to develop. The low estimate is based on a commitment to develop three studios, in which case the Franchise Fee under each Franchise Agreement would be $55,000 per studio. The high estimate is based on a commitment to develop 10 studios, in which case the Franchise Fee under each Franchise Agreement would be $35,000 per studio.
For each studio developed under a Development Agreement, the franchisee will execute a Franchise Agreement and incur the initial investment expenses for the development of a single studio. The estimate does not include the Franchise Fee, since the Development Fee is credited towards the Franchise Fee for each studio.
In practical terms, this means that while a Body20 franchisee must pay a Development Fee upfront, this fee reduces the amount they will need to pay for the initial Franchise Fee for each studio they open. This can be a significant benefit for franchisees planning to open multiple locations, as it lowers the initial financial burden for each subsequent studio. However, it is important to note that the Development Fee itself is non-refundable, so franchisees should carefully consider their development plans before committing to a specific number of studios.