What compliance is required with Related Agreements to obtain a Body20 successor term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) The Franchisee Parties have fully complied with this Agreement and all other agreements between any of the Franchisee Parties, on one hand, and us, our
Affiliates, and/or our approved vendors, on the other hand, related to Studio or any other Studios (collectively, the "Related Agreements"), including having (a) timely paid all amounts due under such agreements and (b) not received more than three default notices under such agreements;
- (h) At the time you provide written notice of your intent to enter into a Successor Term and at the expiration of the then-current term of this Agreement, the Franchisee Parties are in full compliance with all Related Agreements, including (i) operating all Studios in compliance with all System Standards (including all minimum quality, service, cleanliness, and/or health and safety standards) and (ii) being current (i.e., not delinquent) with respect to all fees or payments due; and
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, to obtain a successor term, a franchisee must be in full compliance with all Related Agreements. These Related Agreements encompass all agreements between the franchisee parties and Body20, its affiliates, and/or its approved vendors related to the studio or any other studios.
Compliance with these Related Agreements includes two key components. First, the franchisee must have timely paid all amounts due under such agreements. Second, the franchisee must not have received more than three default notices under these agreements.
Furthermore, at both the time of providing written notice of intent to enter into a Successor Term and at the expiration of the current term, the franchisee parties must be in full compliance with all Related Agreements. This includes operating all studios in compliance with all System Standards, such as minimum quality, service, cleanliness, and health and safety standards, and being current with all fees or payments due.