What costs and expenses are included in the charge for inspecting a proposed product for Body20?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
and our Affiliates may use all amounts received from suppliers and/or distributors, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our Affiliates deem appropriate. If you derive any revenue based on payments or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement and such revenue shall be included as part of your Gross Sales.
- (d) Approval Process. If you would like to offer products, services, or Sessions or use any supplies, Operating Assets, or services that we have not approved or to purchase or lease from a supplier or service provider that we have not approved, you must submit a written request for approval and provide us with any information that we request. We have the right to inspect the proposed supplier's facilities and test samples of the proposed products and to evaluate the proposed service provider and the proposed service offerings. We may require the proposed supplier or service provider to visit our headquarters, currently in Chicago, Illinois, to evaluate the proposed supplier or service provider in person. You agree to pay us a charge that is equal to the greater of $1,000 or our and our affiliates' actual costs and expenses related to the inspection and/or testing the proposed product or evaluating the proposed service or service provider, including personnel and travel costs, whether or not the item, service, supplier, or service provider is approved. We have the right to grant, deny, or revoke approval of products, services, suppliers, or servic
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, if a franchisee wants to offer products, services, or sessions, or use supplies, operating assets, or services that Body20 has not already approved, they must seek approval from Body20. As part of this process, Body20 has the right to inspect the proposed supplier's facilities, test product samples, and evaluate the proposed service provider and their offerings.
Body20 may require the supplier or service provider to visit their headquarters, which are currently located in Chicago, Illinois, for an in-person evaluation. The franchisee is responsible for covering the costs associated with this inspection and/or testing.
The franchisee will be charged the greater of $1,000 or Body20's and its affiliates' actual costs and expenses related to the inspection, testing, or evaluation. These costs can include personnel and travel expenses, regardless of whether the item, service, supplier, or service provider is ultimately approved. Body20 retains the right to grant, deny, or revoke approval based on their judgment and will provide a written decision. If no decision is received within 30 days of submitting all required information, the request is considered disapproved.
This policy ensures Body20 maintains quality control and consistency across all franchise locations, but it also means franchisees need to factor in these potential costs when considering new offerings or suppliers. Franchisees should communicate openly with Body20 and provide all necessary information promptly to facilitate the approval process and manage expenses effectively.