Where will Body20 arbitration proceedings be held?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Procedure. Except as stated in Section 16.3(d) (Excepted Disputes), all disputes between you, your Affiliates, Owners, guarantors, and/or your or your Affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Studio will be resolved by binding arbitration. The arbitration proceeding shall be conducted by one arbitrator and in accordance with then-current Commercial Arbitration Rules of the AAA. All arbitration proceedings will be held at AAA's offices or other suitable offices that we select in the metropolitan area in which our principal place of business is then located.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, arbitration proceedings will be held at the American Arbitration Association's (AAA) offices or other suitable offices selected by Body20 in the metropolitan area where Body20's principal place of business is located. Currently, Body20's principal place of business is 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660. Therefore, unless Body20 moves its principal place of business, arbitration would likely occur in the Newport Beach, California metropolitan area.
This means that if a franchisee has a dispute with Body20 that goes to arbitration, the franchisee may need to travel to the location of the arbitration. This could involve significant travel expenses and time, depending on where the franchisee's Body20 studio is located. Franchisees should factor in these potential costs when evaluating the franchise opportunity.
It is important to note that certain disputes, such as those arising under the Lanham Act or related to Body20's intellectual property, will not be resolved through arbitration unless Body20 consents. In such cases, litigation will be filed in the United States District Court for the district in which Body20 has its principal place of business, or the state court in which Body20 has its principal place of business if federal jurisdiction cannot be obtained. Additionally, the Illinois Franchise Disclosure Act stipulates that any provision in the agreement designating jurisdiction and venue outside of Illinois is void, although arbitration may still take place outside of Illinois.