What is the 'Extension Fee' for each Body20 studio if the Signing Deadline or Opening Deadline is extended?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
han the Initial Franchise Agreement, including different fees (though no Franchise Fee shall be owed under such agremeent) and territorial rights. You must sign a Franchise Agreement for a Studio before you may execute a lease, sublease, or purchase agreement intended for such Studio or commence construction of such Studio. We will not be obligated to offer you a Franchise Agreement for a Studio unless:
1. we have complied with all applicable franchise registration and disclosure laws and, if required by applicable laws, have provided you with a copy of our then-current Franchise Disclosure Document; and
2. you and any Affiliated Entities have fully complied with any Franchise Agreements that are in effect.
3.2 Deadlines. You must enter into Franchise Agreements and develop and open Studios in accordance with the deadlines set forth in the Development Schedule. Signing Deadline. By each "Signing Deadline" specified in the Development Schedule, you must have signed our then-current standard form of Franchise Agreement for the applicable number of Studios in the Development Area specified on the Development Schedule. Opening Deadline. By each "Opening Deadline" specified in the Development Schedule, you must have the applicable number of Studios in the Development Area open and operating. Discretionary Extension. We may, in our sole discretion, extend any Signing Deadline or any Opening Deadline, which we may condition on your payment of an Extension Fee and execution of a general release. The "Extension Fee" for each Studio will be $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such Studio is extended. Any extension that we grant you (or your Affiliated Entity) will apply only to the Studios for which you (or your Affiliated Entity) obtained the extension and will not extend, delay, or otherwise impact any other deadline under the Development Schedule. Disclosure Extension.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee needs an extension to either the Signing Deadline or the Opening Deadline for a studio, Body20 may grant an extension at its discretion. This extension is conditional upon the franchisee paying an Extension Fee and executing a general release.
The Extension Fee is set at $2,500 per month, or any portion thereof, for each studio that requires an extension. This fee applies separately to each studio if a franchisee is developing multiple locations under a development schedule.
It's important to note that any extension granted applies only to the specific studio for which it was obtained and does not affect the deadlines for any other studios under the development schedule. However, if the delay in executing a Franchise Agreement by the Signing Deadline is due to Body20's inability to deliver a timely Franchise Disclosure Document, the Signing Deadline and Opening Deadline will be adjusted without requiring the franchisee to pay an Extension Fee or execute a general release.