Is Body20 or its affiliates a supplier with whom franchisees are required to do business?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
at you offer, you must immediately discontinue offering the Session or modify the Session in accordance with our instructions.
Currently, we require you to purchase from us or our affiliates (i) the Initial FF&E Package, (ii) the Presale Kit, (iii) the Initial Retail Inventory Kit, (iv) certain ongoing equipment purchases, and (v) replacement inventory and sales materials and accessories. We reserve the right to designate us or our affiliates as approved or required suppliers of other goods or services in the future.
Currently, we require you to purchase from suppliers or service providers that we have designated or approved (i) certain other equipment and supplies, (ii) interior graphics and exterior signage, (iii) the Technology System, (iv) music licenses, and (v) payment processing services. We may require you to purchase other goods or services from approved or designated supplies or services providers in the future.
When you develop and construct your Studio, we have the right to require you to obtain our prior written approval of any project managers, architects, engineers, or designers that you would like to use before you engage them.
One of Sequel Brands' officers owns an interest in us and our affiliates, and we are a supplier with whom you are required to do business. None of our or Sequel Brands' officers own an interest in any unaffiliated suppliers with whom you are required or recommended to do business.
Insurance. You must obtain before you begin construction and/or development of the Studio and must maintain at all times the types of insurance and the minimum policy limits specified in the Manuals. Currently, we require you to obtain and maintain:
Comprehensive General Liability and Professional Liability Insurance. You must maintain comprehensive general liability and professional liability insurance with the following minimum limits:
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are required to purchase certain items from Body20 or its affiliates. Specifically, franchisees must purchase the Initial FF&E Package, the Presale Kit, the Initial Retail Inventory Kit, certain ongoing equipment purchases, and replacement inventory and sales materials and accessories directly from Body20 or its affiliates. Body20 also reserves the right to designate themselves or their affiliates as the approved or required suppliers for other goods or services in the future.
In addition to direct purchases from Body20, franchisees are also required to purchase certain items from suppliers or service providers that Body20 has designated or approved. These include certain other equipment and supplies, interior graphics and exterior signage, the Technology System, music licenses, and payment processing services. This means that while franchisees may not be buying directly from Body20 for these items, they are still restricted to using suppliers that Body20 has pre-approved.
The FDD also states that one of Sequel Brands' officers owns an interest in Body20 and its affiliates, further solidifying Body20 as a required supplier. While none of the officers of Body20 or Sequel Brands own an interest in any unaffiliated suppliers that franchisees are required or recommended to do business with, the restrictions on approved suppliers still limit the franchisee's autonomy in choosing vendors. Body20 estimates that the cost to purchase and lease all equipment, inventory, and other items and services that franchisees are required to obtain from Body20 or its affiliates, from designated suppliers, or in accordance with Body20's specifications ranges from 75% to 90% of the total cost to purchase and lease equipment, inventory, and other items necessary to establish a Studio and 30% to 45% of the total cost to purchase and lease equipment, inventory, and other items to operate a Studio.
Prospective franchisees should carefully consider these restrictions and their potential impact on their operating costs and flexibility. The requirement to purchase from approved or designated suppliers could limit the franchisee's ability to negotiate better prices or find alternative products. Additionally, the fact that Body20 or its affiliates may receive rebates from designated suppliers (ranging from 5% to 30% of the franchisee's total purchases for certain items) raises questions about potential conflicts of interest and whether the approved suppliers are truly the best option for the franchisee.