How is the weekly Royalty Fee calculated for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2 Royalty Fee.
(a) Amount of Royalty Fee. You must pay us a weekly royalty fee (the "Royalty Fee") equal to 8% of your Gross Sales (as defined in Section 3.2(b)) for the previous week. The Royalty Fee is non-refundable and is paid in consideration of the ongoing right to use
the Marks and the System in accordance with this Agreement and not in exchange for services rendered by us.
- (b) Gross Sales. "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 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are required to pay a weekly Royalty Fee. This Royalty Fee is calculated as 8% of the franchise's Gross Sales from the previous week. This fee is non-refundable and compensates Body20 for the franchisee's ongoing right to use the Body20 Marks and System.
Gross Sales encompass all revenue derived from the operation of the Body20 studio. This includes revenue from various transaction methods such as cash, checks, credit or debit cards, gift cards or certificates, and other credit transactions, irrespective of when the revenue is collected or when the products or services are provided. Gross Sales also include any proceeds from business interruption insurance related to revenue loss at the studio, as well as promotional allowances or rebates received for purchasing products or supplies or for customer referrals.
However, Gross Sales do not include bona fide returns and credits actually provided to customers, nor do they include sales or other taxes collected from customers and remitted directly to the appropriate taxing authority. Furthermore, franchisees are not permitted to deduct payment provider fees, such as bank or credit card company fees and gift card vendor fees, from their Gross Sales calculation. The Royalty Fees are part of the Operating Fees, which must be reported and paid weekly within five business days after the end of each calendar week.