According to the Body20 FDD, what representations are franchisees allowed to rely on?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Reliance on Contrary Representations.
You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement.
You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (d) Financial Performance Representations.
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents,
employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Studio or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates. Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are primarily limited to relying on the statements within the Franchise Agreement and the FDD itself. This means that any promises, assurances, or information received outside of these documents, especially those concerning potential financial performance, should be viewed with caution.
The FDD explicitly states that franchisees cannot claim reliance on representations that contradict the FDD or the Franchise Agreement. Furthermore, unless explicitly stated in the FDD, Body20, its affiliates, and their representatives have not made any representations regarding the historical or anticipated financial performance of any Body20 studio. Any financial information obtained from other franchisees is not endorsed or guaranteed by Body20.
However, there is an exception for franchisees and studios located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. In these states, franchisees do not waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement, offering additional protection to franchisees in those specific states.