What is the definition of 'Covered Studios' used in the Body20 financial performance representation?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
This Item 19 presents information about the financial performance during the 15-month period starting on January 1, 2024 and ending on March 31, 2025 (the "Reporting Period") of franchised Studios that were open throughout the entire Reporting Period ("Covered Studios"). Table 1 presents annual Gross Sales data for the Covered Studios for the 2024 calendar year.
Table 4 presents data for certain franchised Studios that conducted pre-opening sales during the Reported Period.
As of March 31, 2025, there were 67 Studios in operation, including one Studio operated by Predecessor's owners (which we have categorized as an "Affiliate-Owned Studio.") In this Item 19, we have included data for 35 franchised Studios that were open throughout the Reporting Period.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 64–69)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, 'Covered Studios' are defined as franchised locations that were open for the entire 15-month Reporting Period, which ran from January 1, 2024, to March 31, 2025. The financial performance data for these studios is presented in Item 19 of the FDD.
Specifically, Body20 included data from 35 franchised studios that met this criterion in their Item 19 financial performance representations. The FDD excludes data from several categories of studios, including the one Affiliate-Owned Studio, 30 franchised Studios that opened during the Reporting Period, one franchised Studio that did not report complete data due to a transfer of ownership, and one franchised Studio that experienced atypical sales due to relocation. Additionally, data from nine Studios that permanently closed during the Reporting Period, including three that were not open for at least 12 months prior to closing, are also excluded from the 'Covered Studios' data.
This definition is important for prospective franchisees because the financial performance data presented for 'Covered Studios' is intended to provide an overview of how established Body20 franchises perform under normal operating conditions. By excluding studios that were not open for the entire period or experienced unusual circumstances, Body20 aims to provide a more consistent and reliable representation of potential financial outcomes. However, Body20 also states that individual results may differ and there is no assurance that a franchisee will sell or earn as much as the 'Covered Studios'.