According to the Body20 franchise agreement, what constitutes 'control' of a person?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of these definitions, "control" of a person means ownership or control of a majority of the voting ownership of the person or any combination of voting ownership and/or one or more agreements that together afford control of the management and policies of such person.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, 'control' of a person is defined within the context of ownership and management influence. Specifically, it means owning or controlling a majority of the voting ownership of the person. Alternatively, 'control' can be established through a combination of voting ownership and one or more agreements.
This definition is important for prospective Body20 franchisees because it clarifies how ownership and decision-making power are determined within the franchise system. If a franchisee is an entity, such as a corporation or LLC, the franchisor, Body20, needs to understand who has the authority to make business decisions and bind the franchisee to agreements.
The definition of 'control' ensures that Body20 knows who the responsible parties are and who has the ultimate say in the operation of the franchise. This is particularly relevant when it comes to matters of compliance, financial obligations, and adherence to the Body20 system. Franchisees should carefully consider this definition, especially if they plan to structure their business as an entity with multiple owners or complex management agreements.