Does the Body20 Development Agreement allow for renewal or extension of the franchise term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 5 | Unless earlier terminated, the term expires at midnight on the earlier of (i) the last Opening Deadline date listed on the Development Schedule, or (ii) the opening of the last Studio to be developed pursuant to the Development Schedule. |
| b. | Renewal or extension of the term | Not applicable | Not applicable. |
| c. | Requirements for franchisee to renew or extend | Not applicable | Not applicable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Development Agreement does not offer renewal or extension options. The table in Item 17 explicitly states "Not applicable" for both "Renewal or extension of the term" and "Requirements for franchisee to renew or extend" within the context of the Development Agreement. This means that once the Development Agreement expires, there is no contractual right to extend it.
However, the Franchise Agreement, which governs the operation of individual Body20 studios, does provide renewal options. Franchisees who meet specific conditions can obtain two additional consecutive successor terms of five years each. These conditions include notifying Body20 of the intent to renew at least six months in advance, signing a successor franchise agreement with potentially different terms, refurbishing the studio, executing a general release, completing training requirements, securing the right to continue operating at the site, complying with all agreements, and paying a successor fee.
This distinction between the Development Agreement and the Franchise Agreement is important for prospective Body20 franchisees. The Development Agreement focuses on the initial development of multiple studios, while the Franchise Agreement governs the ongoing operation of each studio. Therefore, while the Development Agreement itself cannot be renewed, franchisees can renew their individual Franchise Agreements if they meet the specified criteria. This structure is fairly common in franchise systems that involve area development agreements, as it allows Body20 to reassess the relationship and performance of the franchisee before granting additional terms for individual studio operations.