What are the conditions for a Body20 franchisee to be eligible for a successor term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) You complete, and have your Operating Principal and Designated Manager complete, all of our then-current training requirements, including any additional training that we may require;
(f) You secure the right from your landlord to continue operating at the Site for the remainder of such Successor Term;
(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
(i) You pay to us the Successor Fee (as defined in Section 3.6 (Successor Fee)).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, several conditions must be met for a franchisee to be eligible for a successor term. These conditions ensure that the franchisee has maintained a compliant and successful operation throughout the initial term of the agreement.
First, the franchisee, along with their Operating Principal and Designated Manager, must complete all of Body20's then-current training requirements, including any additional training that Body20 may require. This ensures that the franchisee and their key personnel are up-to-date with Body20's standards and practices. The franchisee must also secure the right to continue operating at the current site for the duration of the successor term, which involves negotiations with the landlord.
Additionally, the franchisee must have fully complied with the Franchise Agreement and all other related agreements with Body20, its affiliates, and approved vendors. This includes timely payment of all amounts due and not having received more than three default notices under these agreements. At the time of providing written notice of intent to enter a successor term and at the expiration of the current term, the franchisee must be in full compliance with all related agreements, operating all studios in accordance with Body20's system standards, and be current with all fees and payments. Finally, the franchisee must pay the successor fee as defined in the franchise agreement.