Does a failure to meet the Development Schedule automatically allow Body20 to terminate a previously executed Franchise Agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Your failure to open and thereafter operate Studios in accordance with the Development Schedule will not, in itself, constitute cause for us to terminate any previously-executed Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee's failure to open and operate studios according to the Development Schedule does not automatically constitute grounds for Body20 to terminate a previously executed Franchise Agreement. However, failing to meet the deadlines outlined in the Development Schedule does constitute an Event of Default.
If a franchisee fails to meet the Development Schedule, Body20 has the option to modify the Development Area or the Development Schedule itself. This modification, enacted via written notice, could decrease the number of studios the franchisee is required to develop. Importantly, Body20 is not obligated to refund any portion of the Development Fee if they reduce the Development Area or Schedule due to such a default.
In the event of default, Body20 retains several remedies. They can choose to terminate the Development Agreement, retaining the Development Fee without relieving the franchisee of outstanding obligations. Alternatively, instead of termination, Body20 can modify the Development Area or Schedule, reducing the franchisee's development requirements. This flexibility allows Body20 to address non-compliance in a way that may preserve the relationship while still protecting their interests.