According to the Body20 FDD, what is the source of the requirement for these additional disclosures?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Franchise Disclosure Document of BODY20 Franchisor LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, AND WISCONSIN
The following provision applies only to franchisees and franchised 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, and/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.
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
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- SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF BUSINESS OVERSIGHT BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR DEVELOPMENT AGREEMENT OR FRANCHISE AGREEMENT.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the additional disclosures are required by various state franchise laws. These additional disclosures are included in Exhibit I of the FDD.
The FDD specifies that each provision within these additional disclosures will only apply if the state franchise registration and disclosure law is applicable to the franchisee. This means that a prospective Body20 franchisee should carefully review these state-specific disclosures to understand their rights and obligations based on the state in which they plan to operate their franchise.
For franchisees operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, the FDD states that no statement or acknowledgement signed by the franchisee can waive claims under state franchise law, including claims of fraud. This provision is designed to protect franchisees in these states from unknowingly giving up their legal rights.
The FDD also includes specific disclosures for California, such as the requirement to receive a copy of all proposed agreements related to the sale of the franchise along with the disclosure document. Additionally, Section 31125 of the Franchise Investment Law mandates that Body20 provide a disclosure document approved by the Commissioner of Business Oversight before requesting any material modifications to the development or franchise agreement.