factual

What is the current status of the Enlightened Armadillo, Inc. lawsuit, specifically regarding the demurrer filed by the Y6 Defendants, and what are the implications for Body20?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

California, County of Orange, Case No. 30-2023- 01367265-CU-AT-CXC. This action was filed by two Yoga Six® franchisees and their owners, including Enlightened Armadillo, Inc., Snug Holding Company LLC, Mark Hrubant, Ella Hrubant, and Melinda Sung (collectively, the "Y6 Plaintiffs") against (i) Y6 and Yoga Six Franchise SPV, LLC; (ii) the Xponential Entities; (iii) the H&W Entities; (iv) LAG Fit, Inc.; (v) MGAG LLC; and (vi) Anthony Geisler, Mark Grabowski, Lindsay Junk, Nate Chang, Jason Losco, Lance Freeman, Ryan Junk, Megan Moen, John Meloun, Sarah Luna, Brenda Morris, and Justin LaCava (collectively, (i) through (vi), the "Y6 Defendants"). The Y6 Plaintiffs alleged that one or more of the Y6 Defendants (a) violated pre-sale disclosure obligations under the California Franchise Investment Law by failing to provide a compliant Franchise Disclosure Document, making statements that they contend were erroneous or prohibited, and failing to disclose information that they contend necessitated disclosure; (b) fraudulently induced them to invest in franchises; (c) breached the implied covenant of good faith and fair dealing (as to the Yoga Six entities only); and (d) engaged in unfair and deceptive trade practices. The Y6 Plaintiffs seek (1) declaratory and injunctive relief regarding the enforcement of the mandatory arbitration provisions in their franchise agreements; (2) rescission of their franchise agreements; (3) actual and special damages; and (4) attorneys' fees, costs, and interest. The Y6 Defendants have all filed a demurrer to the complaint.

  • Nickle Acquisition, LLC, et al v. Xponential Fitness, Inc., et al., filed February 3, 2025, Superior Court for the State of California, County of Orange, Case No. 30-2025-01459041- CU-AT-CXC. This action was filed by a CycleBar® and BFT® franchisee and its owners, Nickle Acquisition LLC, Michael Nickle, and Jana Nickle, (collectively, the "Nickle Plaintiffs") against (i) BFT Franchise Holdings, LLC and BFT Franchise SPV, LLC; (ii) CycleBar Franchising, LLC and CycleBar Franchising SPV, LLC; (iii) the Xponential Entities and Xponential Holdings LLC; (iv) H&W Investco LP and H&W Investco II LP; (v)

LAG Fit, Inc.; (vi) MGAG LLC;

Source: Item 3 — LITIGATION (FDD pages 13–17)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, Enlightened Armadillo, Inc., along with other Yoga Six franchisees, filed a lawsuit against Yoga Six Franchise, LLC, the Xponential Entities, the H&W Entities, LAG Fit, Inc., MGAG LLC, and several individuals (collectively, the "Y6 Defendants") on November 22, 2023. The Y6 Plaintiffs allege violations of pre-sale disclosure obligations under the California Franchise Investment Law, fraudulent inducement to invest in franchises, breach of the implied covenant of good faith and fair dealing, and unfair and deceptive trade practices. They are seeking declaratory and injunctive relief, rescission of their franchise agreements, actual and special damages, and attorneys' fees, costs, and interest. The Y6 Defendants have filed a demurrer to the complaint.

While the lawsuit does not directly involve Body20, it names individuals who are or were associated with Xponential Fitness, a company with which Body20 is not affiliated. Specifically, Lindsay Junk, Body20's Chief Executive Officer, previously served as Brand President of Y6, and Anthony Geisler, the Chief Executive Officer of Sequel Brands, previously served in the same role for Xponential and various subsidiaries of Xponential. The FDD states that lawsuits involving Xponential and its affiliates involve similar claims and allegations.

For a prospective Body20 franchisee, the existence of this lawsuit and others involving Xponential and its related parties could raise concerns about the business practices and legal risks associated with franchises managed by individuals who were previously affiliated with Xponential. Although the FDD states that these lawsuits do not involve Body20 or its affiliates, the presence of shared personnel and similar allegations might warrant further investigation into Body20's operational and disclosure practices. A potential franchisee should consider discussing these lawsuits and the involvement of Lindsay Junk and Anthony Geisler with Body20's management to gain a better understanding of the company's risk management and legal compliance strategies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.