The fitness industry is undergoing a quiet revolution -- and Body20 is right at the center of it. This innovative electro muscle stimulation (EMS) fitness franchise delivers a full-body workout in just 20 minutes, attracting busy professionals, athletes, and health-conscious consumers who want maximum results in minimum time. If you are considering opening a Body20 franchise, understanding the total investment and your financing options is the first and most important step on the path to ownership.
Body20 franchise costs typically range from $116,000 to $253,000 depending on location, buildout requirements, and market conditions. That is a significant capital commitment -- and for most aspiring franchisees, financing part or all of that investment is a practical necessity. Whether you are a first-time business owner or an experienced entrepreneur expanding your portfolio, the right business loan can make Body20 franchise ownership achievable.
This guide covers everything you need to know: franchise costs, SBA loan options, alternative lending, qualification requirements, and how to structure your financing for long-term success. Read on to get the complete picture before you sign your franchise agreement.
Body20 is a South African-born fitness franchise that uses electro muscle stimulation (EMS) technology to deliver high-intensity, low-impact workouts. During a Body20 session, clients wear a specially designed suit with electrodes that send gentle electrical impulses to activate up to 90% of the body's muscle groups simultaneously. The result: a workout equivalent to 4-5 hours of conventional gym training -- completed in just 20 minutes.
Founded in 2015 and expanded internationally, Body20 has positioned itself in the fast-growing boutique fitness segment. According to data from the U.S. Census Bureau, fitness and recreational sports centers represent one of the fastest-growing categories of personal service businesses in America. The boutique fitness market specifically -- which includes concepts like Body20 -- has outpaced traditional gyms in membership growth for several consecutive years.
Body20's business model is appealing to franchisees for several reasons:
These factors make Body20 an attractive franchise investment -- and also a compelling business model when presenting your loan application to lenders.
Before you can secure financing, you need to know exactly what you are financing. Body20's Franchise Disclosure Document (FDD) outlines the estimated initial investment range. Here is a detailed look at what you can expect to pay:
The Body20 initial franchise fee is approximately $40,000. This one-time fee grants you the right to operate under the Body20 brand, access proprietary training programs, use the EMS technology suite, and receive ongoing support from the franchisor.
Studio build-out costs can range from $30,000 to $80,000 depending on the condition of your chosen space. Body20 studios follow a specific design template with specialized flooring, lighting, and equipment placement. If you choose a raw shell space, expect costs at the higher end of this range.
The EMS suits, control units, and related technology are central to the Body20 concept. Equipment costs typically range from $25,000 to $50,000 for a fully equipped studio with multiple simultaneous-use capacity.
Most franchise lenders and franchisors recommend maintaining 3-6 months of working capital to cover operating expenses while the business ramps up. For Body20, this typically means budgeting $20,000 to $40,000 in working capital reserves.
Other startup costs include insurance, marketing, software systems, uniforms, and professional fees. These typically add $10,000 to $30,000 to the total investment.
| Cost Category | Low Estimate | High Estimate |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Studio Build-Out | $30,000 | $80,000 |
| EMS Equipment | $25,000 | $50,000 |
| Working Capital | $20,000 | $40,000 |
| Other Startup Costs | $10,000 | $30,000 |
| Total Investment | $125,000 | $240,000 |
Note: Figures are estimates based on publicly available FDD data and industry research. Consult the current FDD for precise figures before making any investment decision.
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Apply Now - Free Pre-QualificationMost Body20 franchise owners do not pay the full investment out of pocket. Here are the primary financing vehicles available to you:
The Small Business Administration's flagship SBA 7(a) loan program is widely considered the best option for franchise financing. These government-backed loans offer competitive interest rates (typically Prime + 2.75%), long repayment terms (up to 10 years for working capital, up to 25 years for real estate), and flexible use of proceeds including the franchise fee, equipment, build-out, and working capital.
The SBA 504 program is best suited for franchisees purchasing real estate or major equipment. Since Body20 studios typically lease their space, the 504 program is less commonly used -- but could apply if you plan to purchase your studio building.
Body20's EMS equipment represents a significant portion of the startup investment. Equipment financing allows you to spread the cost of the EMS suits and control units over 3-7 years, preserving working capital for operations. Equipment loans are often easier to qualify for because the equipment itself serves as collateral.
Unsecured working capital loans can supplement your primary financing by covering operational costs during the ramp-up period. These loans typically carry higher interest rates but offer faster approval and fewer documentation requirements.
Some Body20 franchisees use commercial financing products including business lines of credit to manage cash flow during their first year of operations, drawing on the credit line as needed and repaying as revenues increase.
Most lenders require a down payment of 10-30% of the total project cost. Using personal savings, home equity, retirement funds (via ROBS -- Rollover for Business Startups), or gifts from family can satisfy this requirement and improve your loan terms.
SBA loans are the gold standard for franchise financing because they combine government backing (reducing lender risk) with borrower-friendly terms. Here is what you need to know:
The SBA maintains a Franchise Registry that lists franchise brands whose FDDs have been reviewed and pre-approved for SBA lending. When Body20 is on this registry, the loan approval process is streamlined -- lenders do not need to independently review the franchise agreement. If Body20 is not on the registry, your lender may need additional time to review the FDD, but this does not prevent approval.
To apply for an SBA loan for your Body20 franchise, you will typically need:
For a deeper dive into SBA loan requirements and the application process, visit the official SBA website.
If you do not qualify for an SBA loan -- or if you need faster funding -- several alternative lending products can help finance your Body20 franchise.
Community banks and credit unions sometimes offer conventional franchise loans with competitive terms for borrowers with strong credit histories. These loans do not carry SBA guarantees, so underwriting standards are typically stricter -- but if you qualify, the process can be faster than SBA.
A revolving business line of credit is ideal for managing the ongoing cash flow needs of a new fitness studio. You can draw on the line to cover payroll, marketing campaigns, or unexpected equipment maintenance and repay as member revenues flow in.
Some franchisors offer in-house financing or have preferred lending partnerships. Contact Body20's franchise development team to ask about any current financing incentives, deferred fee programs, or preferred lender relationships they maintain.
Rollover for Business Startups (ROBS) is a legitimate IRS-compliant strategy that allows you to use pre-tax retirement funds to finance your franchise without incurring early withdrawal penalties. This can significantly reduce your need for external financing and improve your debt service coverage ratio.
According to Forbes, many franchise buyers combine multiple financing sources -- using ROBS for the equity injection requirement, an SBA loan for the remainder, and equipment financing for the technology buildout.
For borrowers who have been in business for at least 6-12 months (e.g., if you are adding a second Body20 location), unsecured term loans from alternative lenders can provide $50,000 to $500,000 in capital with 6-24 month repayment terms. Rates are higher than SBA, but approval can happen in 24-48 hours.
Lenders evaluate franchise loan applications based on multiple criteria. Here is what most lenders are looking for:
For SBA loans, most lenders require a minimum personal credit score of 650-680, though 700+ will give you access to the best rates and terms. For conventional loans, 720+ is typically preferred.
Most SBA lenders require borrowers to demonstrate liquid assets (cash, stocks, retirement accounts) equal to 10-20% of the loan amount as a down payment. For a $200,000 loan, that means $20,000-$40,000 in liquid assets.
A well-constructed business plan is essential for new franchise startups. Your projections should show a clear path to profitability within 18-24 months and demonstrate your ability to service the debt. Use Body20's Item 19 Financial Performance Representations from their FDD to build realistic revenue assumptions.
Lenders favor borrowers with relevant business, fitness industry, or management experience. If you do not have direct fitness industry experience, highlight transferable skills from other management or sales roles.
Lenders calculate your DSCR by dividing your projected annual net income by your annual debt service obligations. Most lenders want to see a DSCR of at least 1.25 -- meaning your income covers your debt payments by 25%.
For more information on how to qualify for small business financing, Crestmont Capital's team can walk you through the requirements before you apply.
*Figures are estimates based on publicly available FDD data. Verify with current FDD before investing.
Here is a practical roadmap for securing financing for your Body20 franchise:
Request the FDD from Body20's franchise development team. Review Item 7 (estimated initial investment), Item 19 (financial performance representations), and Item 21 (financial statements) carefully. This data will form the foundation of your loan application.
Calculate your liquid assets, total net worth, credit score, and existing debt obligations. This self-assessment will tell you which loan programs you are likely to qualify for and how much down payment you can provide.
Develop a comprehensive business plan including executive summary, market analysis, operations plan, management team biography, and financial projections (income statement, cash flow, and balance sheet for 3 years). Most franchise lenders have templates to guide this process.
Not all lenders have experience with franchise financing. Work with a lender who understands the franchise model -- they will process your application faster, ask smarter questions, and provide better guidance on structuring your deal. Crestmont Capital specializes in small business financing including franchise loans.
Gather your documentation (see list above), complete the loan application, and submit. A strong, organized application package speeds approval and signals professionalism to underwriters.
During underwriting, lenders verify your financial information, review the franchise agreement, and assess the project's viability. Be responsive to requests for additional information to keep the process moving.
Once approved, you will complete the closing process -- signing loan documents, providing any required insurance certificates, and confirming your equity injection. Funds are typically disbursed at closing or in draws tied to project milestones.
For Body20 franchisees looking to expand to multiple locations, also explore multi-unit franchise financing strategies used by experienced franchisees. You can see similar financing approaches in our guide on Planet Fitness franchise loans.
Our franchise lending specialists can review your application in as little as 24 hours. No hard credit pull required to get started.
Start Your Free ApplicationOpening your first franchise is exciting -- but it is also a significant financial undertaking. Here are proven strategies to improve your chances of loan approval and set your Body20 studio up for success.
If your credit score is below 700, take 6-12 months to pay down revolving balances, correct any errors on your credit report, and avoid opening new credit accounts. A higher score can save you thousands of dollars in interest over the life of your loan.
Lenders want to see that you have enough reserves beyond the down payment to operate through early slow periods. Aim to have 3-6 months of projected operating expenses in cash or liquid investments in addition to your down payment.
SBA lenders need to see your real estate situation. Secure a letter of intent from your landlord early in the process -- this speeds underwriting significantly and demonstrates seriousness to both your lender and the franchisor.
Breaking out the EMS equipment purchase into a separate equipment loan can simplify your main SBA application, often speeds processing, and may allow you to preserve more SBA loan proceeds for working capital where you need it most.
Location affects both your loan approval odds and your long-term success. Lenders look favorably on locations with strong demographics matching Body20's target customer (25-55, health-conscious, middle to upper income). A well-located studio with strong lease terms is a better collateral package than a marginal location with a cheap lease.
According to CNBC, borrowers who work with lenders experienced in their specific industry have higher approval rates and better outcomes. Franchise-specific lenders understand how to read an FDD, evaluate projected returns, and structure loans for ramp-up periods.
You may also want to review our general guide on franchise loan financing strategies for additional planning tips that apply across franchise concepts.
The total initial investment for a Body20 franchise typically ranges from approximately $116,000 to $253,000. This includes the $40,000 franchise fee, studio build-out, EMS equipment, working capital, and other startup costs. The final number depends on your location, lease terms, and the condition of your chosen space.
Can I finance my Body20 franchise with an SBA loan?Yes. SBA 7(a) loans are one of the most popular financing vehicles for franchise investments like Body20. These loans offer competitive rates, long terms, and the ability to finance the franchise fee, equipment, build-out, and working capital in a single loan package. Most lenders require a minimum 680 credit score and 10-20% down payment.
What credit score do I need to finance a Body20 franchise?For SBA 7(a) loans, most lenders require a minimum personal credit score of 650-680. To access the best rates and terms, aim for 700 or higher. For conventional bank loans, 720+ is typically preferred. If your score is lower, take time to improve it before applying.
How much down payment is required for a Body20 franchise loan?Most SBA lenders require 10-20% of the total project cost as an equity injection. For a $200,000 investment, that means $20,000-$40,000 out of pocket. The equity can come from personal savings, home equity, retirement funds (via ROBS), or gifts from family members.
Can I use retirement funds to open a Body20 franchise?Yes, through a ROBS (Rollover for Business Startups) arrangement. ROBS allows you to use pre-tax 401(k) or IRA funds to capitalize your business without incurring early withdrawal penalties or taxes. This is a legitimate, IRS-compliant strategy used by many franchise buyers to reduce their loan needs.
How long does it take to get a franchise loan approved?SBA 7(a) loans typically take 30-90 days from application submission to funding, though preferred SBA lenders can often process in 15-30 days. Alternative lending products like equipment financing or unsecured term loans can be approved and funded in as little as 24-72 hours.
Does Body20 offer any in-house financing for franchisees?Body20 may offer financing assistance through preferred lending partnerships or equipment financing programs. Contact their franchise development team directly to ask about current programs. Franchisors periodically introduce incentive programs for new franchisees.
What financial documents do I need for a franchise loan application?Typically: personal and business tax returns (3 years), personal financial statement, the franchise disclosure document and franchise agreement, a business plan with financial projections, bank statements (3-6 months), a resume, and a proposed lease or letter of intent from your landlord.
Can I open multiple Body20 locations with one loan?Multi-unit franchise loans are possible but typically structured differently than single-unit loans. Many multi-unit franchisees use a combination of SBA loans for the first location and equity from that location to finance subsequent ones. Discuss multi-unit development agreements with Body20 and your lender early in the planning process.
What is the Body20 royalty rate?Body20 charges an ongoing royalty fee of approximately 5-6% of gross sales, plus a brand fund contribution for national advertising. These fees are separate from your initial investment and should be factored into your financial projections when calculating debt service coverage.
Is Body20 a good franchise investment?Body20 operates in the fast-growing boutique fitness segment and offers a differentiated, technology-driven product. As with any franchise, profitability depends on location, market demand, management quality, and adherence to the system. Review Item 19 of the FDD carefully and speak with existing franchisees before making any investment decision.
Can I use equipment financing specifically for Body20's EMS technology?Yes. Equipment financing is well-suited for Body20's EMS suits and control units. Lenders can finance 80-100% of the equipment value with the equipment serving as collateral, often at lower rates than unsecured financing. Terms of 3-7 years are typical for fitness equipment.
What happens if my Body20 franchise application is denied?A denial is not final. Ask the lender for specific reasons and address those deficiencies -- whether that means improving your credit score, increasing your down payment, or strengthening your business plan. Alternative lenders and community development financial institutions (CDFIs) may have more flexible criteria.
Do I need prior fitness industry experience to get a Body20 franchise loan?Prior fitness industry experience is helpful but not required for loan approval. Lenders look for business management experience, financial strength, and a clear operational plan. Body20 provides training and support that addresses the fitness-specific knowledge gap.
How do I find the best lender for my Body20 franchise?Look for lenders with demonstrated franchise lending experience, positive reviews from franchise borrowers, and a clear understanding of FDD review processes. National lenders like Crestmont Capital that specialize in small business and franchise financing can offer competitive terms and a faster, smoother process than general commercial lenders.
Body20 represents an exciting opportunity in one of the fastest-growing segments of the fitness industry. With the right financing structure, you can join the Body20 network with a strong capital foundation that gives your studio the best chance to succeed.
Crestmont Capital has helped hundreds of franchise buyers across the country secure the financing they need to open and grow their businesses. Our team understands the franchise model, the SBA process, and the specific challenges facing new franchise owners.
Our application takes just a few minutes. Get a free pre-qualification without affecting your credit score. One of our franchise lending specialists will contact you within 24 hours.
Apply Now - No Cost, No ObligationDisclaimer: The information provided in this article is for general educational purposes only and does not constitute financial, legal, or investment advice. Franchise investment figures are estimates based on publicly available information and may not reflect current FDD disclosures. Always review the current Franchise Disclosure Document and consult with qualified financial and legal professionals before making any franchise or financing decisions. Loan terms, rates, and eligibility requirements vary by lender and individual circumstances. Crestmont Capital is not affiliated with Body20 or its franchise system.