Under what circumstances is Body20 obligated to refund the training fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
lifornia 92660 Email: trevor@sequelbrands.com
The notice address for Franchisee shall be:
Franchisee:
Attn:
Address:
Email:
16. Additional Terms; Inconsistent Terms (if any) (Section 17.19):
A. Section 3.4 (Technology Fee) is amended by deleting the penultimate sentence of that Section and replacing it with the following:
We reserve the right to change the fee by providing you with written notice of any change at least 30 days prior to the implementation of the new fee amount, provided that the Technology Fee will not exceed the greater of $2,500 per month or 2% of your Gross Sales.
- B. Section 3.11 (Training Fee) is deleted and replaced with the following:
- 3.11 Training Fees. Prior to your Required Trainees' (as defined in Section 5.1) attending Initial Training (as defined in Section 5.1), you must pay us an Initial Training fee in the amount of $2,500, which will cover Initial Training for your initial Required Trainees, provided that they attend the same training session. If any of your representatives, including, but not limited to, a
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are generally not entitled to a refund of the training fee. Specifically, the FDD states that Body20 has no obligation to refund any training fee, in whole or in part, for any reason. This policy applies to the initial training fee of $2,500, which covers initial training for the franchisee's initial required trainees, provided they attend the same training session.
This means that even if a franchisee's representative fails to complete the training, or if the franchisee decides not to open a Body20 studio after the training is completed, the training fee is non-refundable. Franchisees should factor this into their financial planning and ensure their representatives are committed to completing the training program.
This no-refund policy is relatively common in the franchise industry, as the franchisor incurs costs in providing the training, regardless of whether the franchisee ultimately opens for business. Prospective Body20 franchisees should carefully consider this policy and any associated risks before investing in the franchise.