What conditions must a Body20 franchisee meet to be eligible for a Successor Term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Term and Successor Terms are referred collectively in this Agreement as the "Term." You may only exercise this right to obtain a Successor Term if:
(a) You give us written notice of your desire to obtain a successor License at least six, but no more than 12, months before the expiration of the then-current Initial Term or Successor Term;
(b) You and your Owners (as applicable) executing and returning to us the successor Franchise Agreement, Owner's Guarantee, and ancillary agreements we provide to you to govern your ownership and operation of the Studio during the Successor Term (the "Successor Agreements"), which you acknowledge may contain terms materially different than those contained in this Agreement, including (i) higher rates of Royalty Fees and Brand Fund Fees (as both are herein defined) and other fees and charges and (ii) a modified Territory.
The Successor Agreements will be modified as we deem necessary and appropriate to reflect changes we deem appropriate for such Successor Term, including (a) that the Studio is a developed and operating business, (b) that you are paying a Successor Fee (as defined in Section 3.6 (Successor Fee)) in lieu of an initial franchise fee, (c) any changes to the description of the Territory (which may make it smaller or larger), as we deem appropriate to reflect changes in demographics, competitive positioning, and our territorial policies since the Studio was originally developed, and (d) that you will have no further renewal or extension rights;
(c) You refurbish or renovate the Studio, at your expense, to conform the decor, color schemes, storefront, signage, and presentation of the Marks to our then-current image and, if necessary, in our sole opinion, to update and replace the equipment, furniture, signage, and fixtures to meet our then-current specifications;
(d) You and your Owners execute a general release, in a form we prescribe, of any and all claims against us, our Affiliates, and our and their past, present, and future officers, directors, shareholders, and employees arising out of, or relating to, your Studio;
(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 the 2025 Body20 Franchise Disclosure Document, a franchisee must meet several conditions to be eligible for a Successor Term. The franchisee must provide written notice of their desire to obtain a successor license at least six, but no more than 12, months before the expiration of the current term. The franchisee and their owners must execute and return the successor Franchise Agreement, Owner's Guarantee, and any other related agreements provided by Body20. These successor agreements may contain terms that are materially different from the original agreement, including higher fees and a modified territory.
The franchisee is required to refurbish or renovate the studio at their own expense to conform to Body20's current image, including decor, color schemes, storefront, and signage. They may also need to update or replace equipment, furniture, and fixtures to meet Body20's current specifications. Additionally, the franchisee and their owners must execute a general release of any and all claims against Body20 and its affiliates. 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 may be required.
To maintain eligibility, the franchisee must secure the right to continue operating at the site for the duration of the Successor Term from their landlord. The franchisee parties must have fully complied with the Franchise Agreement and all other related agreements, including timely payment of all amounts due and not having received more than three default notices. At the time of providing written notice and at the expiration of the current term, the franchisee parties must be in full compliance with all related agreements, operate all studios in compliance with system standards, and be current with all fees and payments. Finally, the franchisee must pay Body20 the Successor Fee as defined in the franchise agreement.