Is the Body20 Designated Manager required to also be the Operating Principal?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Operating Principal must have at least a 10% ownership interest in your Entity and must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a Designated Manager to manage the day-to-day business of your Studio, who may also be the Operating Principal. The Designated Manager is not required to have an ownership interest in your Entity.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 55)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Designated Manager is not required to be the Operating Principal. The Operating Principal must have at least 10% ownership in the Body20 franchise entity and have authority over all business decisions related to the studio, including the power to bind the franchisee in dealings with Body20. The Designated Manager is responsible for managing the day-to-day business operations of the Body20 studio.
However, the Operating Principal can also serve as the Designated Manager, provided Body20 does not believe that the Operating Principal lacks sufficient experience or qualifications. The Designated Manager is not required to have any ownership interest in the franchise entity.
For a prospective Body20 franchisee, this provides flexibility in structuring their business. An owner with sufficient experience can manage the studio directly as both Operating Principal and Designated Manager. Alternatively, the owner can hire a separate manager without offering equity in the business. All Operating Principals and Designated Managers must complete the Body20 initial training program.