What factors are excluded when determining the purchase price of the Body20 studio's assets?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price for the Purchased Assets will be their fair market value for use in the operation of a non-franchised Competitive Business (and not a Studio).
However, the purchase price will not include any value for any rights granted by this Agreement, goodwill attributable to the Marks, our brand image, any Proprietary Information or our other intellectual property rights, or participation in the network of Studios.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the purchase price for the studio's assets will be based on their fair market value, specifically for use in a non-franchised competitive business, rather than as an operating Body20 studio. This valuation approach excludes several key elements associated with the Body20 franchise system.
The purchase price explicitly excludes any value associated with the rights granted by the Franchise Agreement itself. This means the value of being a Body20 franchisee is not considered in the asset valuation. Additionally, the calculation omits any goodwill attributable to the Body20 Marks, the brand image, proprietary information, and other intellectual property rights that are part of the Body20 system. These elements, while valuable to an operating Body20 studio, are not included when determining the asset purchase price.
For a prospective franchisee, this means that if Body20 purchases the assets of the studio, the franchisee will not be compensated for the brand recognition, training, or ongoing support provided by Body20. The valuation focuses solely on the tangible assets and their worth in a generic, non-franchised business context. This is a critical point to consider when evaluating the potential resale value of the Body20 studio's assets back to the franchisor.