Under what circumstances is the Management Fee payable to Body20?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTES:
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- All of the fees in the table above are imposed by us, payable to us, non-refundable (except for a portion of the Transfer Fee deposit, as described above), and are uniformly imposed. You must use the payment methods we designate. You must furnish us and your bank with any necessary authorizations to make payment by the methods we require.
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- "Gross Sales" means all revenue that you receive or otherwise derive from operating the Studio, whether from cash, check, credit or debit card, gift card or gift certificate, or other credit transactions, and regardless of collection or when you actually provide the products or services in exchange for the revenue. If you receive any proceeds from any business interruption insurance applicable to loss of revenue at the Studio, there shall be added to Gross Sales an amount equal to the imputed Gross Sales that the insurer used to calculate those proceeds. Gross Sales includes promotional allowances or rebates paid to you in connection with your purchase of products or supplies or your referral of customers. Gross Sales does not include (i) any bona fide returns and credits that are actually provided to customers and (ii) any sales or other taxes that you collect from customers and pay directly to the appropriate taxing authority. You may not deduct payment provider fees (i.e., bank or credit card company fees and gift card vendor fees) from your Gross Sales calculation.
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
Based on the 2025 Body20 Franchise Disclosure Document, the circumstances under which the Management Fee is payable are not explicitly detailed in the provided excerpts. While Item 6 outlines various other fees such as Initial Training Programs, Coach Onboarding Fee, and Music Licensing Fee, it does not include information regarding the Management Fee. The excerpts do define "Gross Sales," which is typically the base upon which management fees are calculated in franchise agreements. However, the specific percentage or formula used to calculate the Body20 Management Fee, as well as the payment schedule, are not described.
Without specific details in the provided excerpts, it's unclear when and how the Management Fee is applied. The excerpts do mention that all fees are imposed by Body20, payable to them, and non-refundable, with payment methods designated by the franchisor. This highlights the importance of understanding all fee obligations before entering into a franchise agreement.
A prospective Body20 franchisee should seek clarification from the franchisor regarding the Management Fee. Specifically, they should inquire about the percentage of gross sales charged, the payment frequency (e.g., weekly, monthly), and any conditions that might affect the Management Fee. Understanding these details is crucial for accurately forecasting expenses and assessing the financial viability of the franchise.