According to the Body20 FDD, what is included in Exhibit A of the Franchise Agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Owners and their spouses (as applicable) must sign the Payment and Performance Guarantee attached to the Franchise Agreement, the current form of which is attached to this Disclosure Document as Exhibit A (the "Franchise Agreement"), which means that all of the provisions of the Franchise Agreement will also apply to your Owners and their spouses (as applicable).
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Exhibit A of the Franchise Agreement includes the current form of the Franchise Agreement. The document specifies that if the franchisee is an entity, all owners and their spouses must sign the Payment and Performance Guarantee attached to the Franchise Agreement. This means that all provisions of the Franchise Agreement will also apply to the owners and their spouses.
This requirement ensures that Body20 can hold the owners of the franchisee entity personally responsible for the franchise's performance and financial obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and commitment from the franchisee.
Prospective Body20 franchisees should carefully review the Franchise Agreement and the Payment and Performance Guarantee to understand their obligations and liabilities. They should also seek legal counsel to ensure they fully understand the implications of signing the guarantee.