Can Body20 designate themselves or their affiliates as approved or required suppliers of other goods or services in the future?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
at you offer, you must immediately discontinue offering the Session or modify the Session in accordance with our instructions.
Currently, we require you to purchase from us or our affiliates (i) the Initial FF&E Package, (ii) the Presale Kit, (iii) the Initial Retail Inventory Kit, (iv) certain ongoing equipment purchases, and (v) replacement inventory and sales materials and accessories. We reserve the right to designate us or our affiliates as approved or required suppliers of other goods or services in the future.
Currently, we require you to purchase from suppliers or service providers that we have designated or approved (i) certain other equipment and supplies, (ii) interior graphics and exterior signage, (iii) the Technology System, (iv) music licenses, and (v) payment processing services. We may require you to purchase other goods or services from approved or designated supplies or services providers in the future.
When you develop and construct your Studio, we have the right to require you to obtain our prior written approval of any project managers, architects, engineers, or designers that you would like to use before you engage them.
One of Sequel Brands' officers owns an interest in us and our affiliates, and we are a supplier with whom you are required to do business. None of our or Sequel Brands' officers own an interest in any unaffiliated suppliers with whom you are required or recommended to do business.
Insurance. You must obtain before you begin construction and/or development of the Studio and must maintain at all times the types of insurance and the minimum policy limits specified in the Manuals. Currently, we require you to obtain and maintain:
Comprehensive General Liability and Professional Liability Insurance. You must maintain comprehensive general liability and professional liability insurance with the following minimum limits:
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- Each Occurrence: $1,000,000
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- General Aggregate: $5,000,000 (per Studio)
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- Products Completed Operations Aggregate: $5,000,000
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- Personal and Advertising Injury: $1,000,000
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- Participant Legal Liability: $1,000,000
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- Professional Liability: $1,000,000
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- Damage to Premises Rented to You: $1,000,000
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- Employee Benefits Liability (each employee): $1,000,000
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- Employee Benefits Liability (aggregate): $2,000,000
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- Medical Expense (any one person): $5,000
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Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 retains the right to designate themselves or their affiliates as the approved or required suppliers for additional goods or services in the future. Currently, franchisees are required to purchase specific items such as the Initial FF&E Package, Presale Kit, Initial Retail Inventory Kit, certain ongoing equipment, and replacement inventory directly from Body20 or its affiliates. This means that Body20 has the potential to expand the range of products and services that franchisees are mandated to source directly from them, impacting the franchisee's operational costs and supplier choices.
In addition to direct purchases from Body20, franchisees are also required to use suppliers or service providers that Body20 has designated or approved for items like certain other equipment and supplies, interior graphics and exterior signage, the Technology System, music licenses, and payment processing services. Body20 also explicitly states that they may require franchisees to purchase other goods or services from approved or designated suppliers or service providers in the future. This gives Body20 significant control over the supply chain and allows them to potentially benefit financially from these arrangements.
For a prospective franchisee, this means that a significant portion of their expenses, estimated between 75% to 90% of the initial costs and 30% to 45% of ongoing operational costs, are subject to Body20's control regarding sourcing and supplier selection. Furthermore, if a franchisee wishes to use a non-approved supplier, they must seek approval from Body20, which involves a potentially costly evaluation process. Body20 can charge a fee equal to the greater of $1,000 or their actual costs for inspecting facilities, testing products, and evaluating service providers, with no guarantee of approval. This highlights the importance of understanding the full scope of required and approved suppliers before investing in a Body20 franchise.