What agreement must a Body20 franchisee sign for each additional studio they have the right to develop?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You must sign a Franchise Agreement for a Studio before you may execute a lease, sublease, or purchase agreement intended for such Studio or commence construction of such Studio. We will not be obligated to offer you a Franchise Agreement for a Studio unless:
- 1. we have complied with all applicable franchise registration and disclosure laws and, if required by applicable laws, have provided you with a copy of our then-current Franchise Disclosure Document; and
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, for each additional studio a franchisee has the right to develop, they must sign Body20's then-current Franchise Agreement. This agreement may include materially different terms than the initial franchise agreement, potentially involving different fees and territorial rights.
The Franchise Agreement must be signed before the franchisee can execute any lease, sublease, or purchase agreement for the studio location or begin construction. Body20 is not obligated to offer a Franchise Agreement unless they have complied with all applicable franchise registration and disclosure laws, including providing the franchisee with a current Franchise Disclosure Document if required by law.
Furthermore, the franchisee and any affiliated entities must be in full compliance with any existing Franchise Agreements. Franchisees must also adhere to the deadlines set forth in the Development Schedule for signing agreements and opening studios. Failure to meet these deadlines may result in extensions granted at Body20's discretion, potentially conditioned on the payment of an Extension Fee of $2,500 per month (or portion thereof) and the execution of a general release.