What business or advertising practices are Body20 franchisees prohibited from engaging in?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchised 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, and/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. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, franchisees in certain states are protected from waiving claims under state franchise laws or disclaiming reliance on franchisor statements. Specifically, in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims of fraud or disclaim reliance on statements made by Body20 or its representatives. This provision overrides any conflicting terms in other franchise documents.
Furthermore, the FDD states that in Washington, any provision prohibiting a franchisee from communicating with or complaining to regulators is unlawful. This ensures franchisees can freely report issues without fear of retribution. Additionally, Washington law voids any franchise agreement provisions that contradict the express instructions in the Franchise Disclosure Document.
These regulations aim to protect franchisees by ensuring they retain their rights under state franchise laws and can rely on the information provided by Body20 during the franchise sales process. It also promotes transparency and accountability by preventing restrictions on communication with regulatory bodies. Prospective franchisees should be aware of these protections, especially if they are located in the listed states.