Are disputes related to the payment of sums owed to Body20 subject to arbitration?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Excepted Disputes.
The following disputes will not be resolved through arbitration unless we consent to arbitration: (i) disputes that arise under or are related to the Lanham Act, as now or later amended; (ii) disputes that otherwise relate to the ownership or validity of any of the Intellectual Property; (iii) disputes that involve enforcement of our intellectual property rights or protection of our Proprietary Information; or (iv) disputes related to the payment of sums you owe us or our affiliates.
Any litigation under this subsection will be filed exclusively in the United States District Court for the district in which we have our principal place of business at the time of filing (or, if federal jurisdiction cannot be obtained, the state court in which we have our principal place of business at the time of filing), and you irrevocably consent to these courts' jurisdiction over you.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, disputes related to the payment of sums owed to Body20 are not subject to arbitration unless Body20 consents to arbitration. This means that Body20 retains the right to pursue legal action in court to recover any outstanding payments from a franchisee, rather than being required to resolve the matter through arbitration.
Specifically, Body20 can file any litigation in the United States District Court for the district in which they have their principal place of business, or if federal jurisdiction cannot be obtained, the state court in which they have their principal place of business. The franchisee irrevocably consents to these courts' jurisdiction. This clause ensures that Body20 has the option to litigate in a venue of its choosing for payment disputes.
This is a significant point for prospective franchisees to consider. While arbitration is often seen as a faster and less expensive alternative to litigation, Body20 retains the option to pursue court action for payment disputes. Franchisees should be aware of this provision and understand that they may be subject to litigation in a potentially distant jurisdiction if a payment dispute arises with Body20.