Besides Section 6.10(a), what other section provides exceptions to the Body20 franchisee's sole responsibility for determining prices?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
6.7 Pricing. If we determine that we may lawfully require you to charge certain prices for goods or services, certain minimum prices for goods or services, or certain maximum prices for goods or services, you must adhere to our pricing policies as set forth in the Manuals or otherwise in writing from time to time. If we set a suggested retail price for a good or service, we may prohibit you from advertising any other prices for such goods or services. Except as otherwise provided in this Section and in Section 6.10(a) (Promotional Programs and Reciprocity), you are solely responsible for determining the prices that you will charge Members and customers. You must provide us with your current price list upon our request.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Section 6.7 outlines the circumstances where Body20 may influence pricing. Besides Section 6.10(a), which covers promotional programs and reciprocity, Section 6.7 states that Body20 may require franchisees to adhere to certain pricing policies. These policies could involve setting specific prices, minimum prices, or maximum prices for goods or services.
This means that while franchisees generally have the autonomy to set their own prices, Body20 retains the right to mandate pricing under certain conditions. Furthermore, if Body20 establishes a suggested retail price for a good or service, franchisees might be prohibited from advertising alternative prices. Franchisees must also provide Body20 with their current price list upon request.
For a prospective Body20 franchisee, this indicates a degree of pricing control exerted by the franchisor. It's crucial to understand the specific conditions under which Body20 can dictate pricing and how this might affect profitability and competitive strategies. Franchisees should inquire about the frequency and scope of these pricing policies to assess their potential impact on business operations.