Besides the FDD, where else might financial performance representations be stated regarding the Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
uccess of any business contemplated by this Agreement or the profits that may be achieved; (iii) there are no promises, commitments, "side deals," options, rights of first refusal, or other rights or obligations in connection with this Agreement except as expressly provided for in this Agreement; and (iv) the terms and covenants in this Agreement are reasonable and necessary for us to maintain our high standards of quality and service, as well as the uniformity of those standards at each Studio, and to protect and preserve the goodwill of the Marks.
- (c) No Reliance on Contrary Representations. You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement. You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (d) Financial Performance Representations. Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents,
employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Studio or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates. Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
**No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 does not make financial performance representations outside of the FDD, nor do its representatives. Specifically, Item 23 emphasizes that franchisees should not rely on any representations about potential revenues, earnings, or profitability of a Body20 studio that are not expressly stated within the FDD. Any financial information acquired from existing franchisees is not endorsed or guaranteed by Body20.
This disclaimer is reinforced by a receipt that the franchisee must sign, acknowledging that, other than what is presented in Item 19 of the FDD, no employee or representative of Body20 has made any statements or representations regarding the amount of money that others have made or that a franchisee might make. This aims to prevent franchisees from relying on potentially misleading or unsubstantiated claims made outside the official disclosure.
However, the FDD includes a caveat for franchisees in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin). In these states, no signed document can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Body20 or its representatives. This provision offers additional protection to franchisees in these states, ensuring they can still pursue claims based on misrepresentations even if they signed an agreement disclaiming reliance on such statements.
Prospective Body20 franchisees should carefully review Item 19 of the FDD for any financial performance representations made by Body20. They should also be cautious about any financial claims made outside of the FDD and understand their rights, especially if they are located in one of the states with specific protections against waivers and disclaimers of reliance.