Before what actions must a Body20 franchisee sign a Franchise Agreement for a studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee will be credited towards the Franchise Fee due for each Studio that you develop pursuant to this Agreement. Thus, there shall be no additional Franchise Fee due under each Franchise Agreement signed pursuant to this Development Agreement. The Development Fee is fully earned by us when we and you sign this Agreement and is non-refundable, even if you do not develop Studios in accordance with the Development Schedule.
3. Development Obligations.
3.1 Development of Studios.
- (a) Initial Studio. You must sign your Initial Franchise Agreement at the same time that you sign this Agreement and comply with the site selection procedures set forth in Section 4.1 (Site Selection) of the Initial Franchise Agreement.
- (b) Subsequent Studios. For each additional Studio that you have the right to develop in accordance with the Development Schedule, you must sign our then-current Franchise Agreement, which may have materially different terms than the Initial Franchise Agreement, including different fees (though no Franchise Fee shall be owed under such agremeent) and territorial rights.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee is developing multiple studios, they must sign a Franchise Agreement before executing a lease, sublease, or purchase agreement for the studio, or before starting construction on the studio. Body20 will not offer a Franchise Agreement unless they have complied with all applicable franchise registration and disclosure laws, including providing the franchisee with a copy of the current Franchise Disclosure Document if required by law.
For the initial studio under a development agreement, the franchisee must sign the Initial Franchise Agreement at the same time they sign the Development Agreement. They must also comply with the site selection procedures outlined in the Development Agreement.
These stipulations ensure that Body20 franchisees are fully informed and compliant with legal and contractual obligations before committing to significant investments such as property leases or construction. It also protects Body20 by ensuring franchisees meet all requirements before beginning operations.