Can Body20 decide not to complete the purchase of the studio assets after the purchase price is determined?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the option to not complete the purchase of a studio's assets even after the purchase price has been determined. Specifically, the FDD states that after the fair market value for the assets is determined, Body20 "may decide after the purchase price is determined not to complete the purchase."

This clause provides Body20 with significant flexibility in its acquisition strategy. Even after going through the appraisal process and determining a purchase price, Body20 can still back out of the deal. This could occur for various reasons, such as a change in market conditions, a reassessment of the studio's performance, or a shift in Body20's overall strategic priorities.

For a prospective Body20 franchisee, this clause introduces an element of uncertainty. While the franchisee may anticipate a sale of their studio assets to Body20 upon termination or expiration of the franchise agreement, there is no guarantee that the sale will actually occur. This could leave the franchisee with the responsibility of disposing of the assets themselves, potentially at a lower value than the appraised fair market value. Franchisees should factor this possibility into their financial planning and consider negotiating terms that provide greater certainty regarding the sale of assets upon termination or expiration.