What fee must a Body20 franchisee pay to be eligible for a Successor Term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) You pay to us the Successor Fee (as defined in Section 3.6 (Successor Fee)).
The Initial Term and Successor Terms are referred collectively in this Agreement as the "Term." You may only exercise this right to obtain a Successor Term if:
(a) You give us written notice of your desire to obtain a successor License at least six, but no more than 12, months before the expiration of the then-current Initial Term or Successor Term;
(b) You and your Owners (as applicable) executing and returning to us the successor Franchise Agreement, Owner's Guarantee, and ancillary agreements we provide to you to govern your ownership and operation of the Studio during the Successor Term (the "Successor Agreements"), which you acknowledge may contain terms materially different than those contained in this Agreement, including (i) higher rates of Royalty Fees and Brand Fund Fees (as both are herein defined) and other fees and charges and (ii) a modified Territory.
(c) You refurbish or renovate the Studio, at your expense, to conform the decor, color schemes, storefront, signage, and presentation of the Marks to our then-current image and, if necessary, in our sole opinion, to update and replace the equipment, furniture, signage, and fixtures to meet our then-current specifications;
(d) You and your Owners execute a general release, in a form we prescribe, of any and all claims against us, our Affiliates, and our and their past, present, and future officers, directors, shareholders, and employees arising out of, or relating to, your Studio;
(e) You complete, and have your Operating Principal and Designated Manager complete, all of our then-current training requirements, including any additional training that we may require;
(f) You secure the right from your landlord to continue operating at the Site for the remainder of such Successor Term;
(g) The Franchisee Parties have fully complied with this Agreement and all other agreements between any of the Franchisee Parties, on one hand, and us, our
Affiliates, and/or our approved vendors, on the other hand, related to Studio or any other Studios (collectively, the "Related Agreements"), including having (a) timely paid all amounts due under such agreements and (b) not received more than three default notices under such agreements;
(h) At the time you provide written notice of your intent to enter into a Successor Term and at the expiration of the then-current term of this Agreement, the Franchisee Parties are in full compliance with all Related Agreements, including (i) operating all Studios in compliance with all System Standards (including all minimum quality, service, cleanliness, and/or health and safety standards) and (ii) being current (i.e., not delinquent) with respect to all fees or payments due; and
(i) You pay to us the Successor Fee (as defined in Section 3.6 (Successor Fee)).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee must pay a Successor Fee to be eligible for a Successor Term. The specific amount of the Successor Fee is not defined in this section, but it is referenced in Section 3.6 of the Franchise Agreement.
To qualify for a Successor Term, the franchisee must also meet several other conditions. These include providing written notice of their intent to obtain a successor license at least six, but no more than 12, months before the current term expires. Additionally, the franchisee and their owners must execute and return the successor Franchise Agreement, Owner's Guarantee, and any other related agreements provided by Body20. These successor agreements may contain terms that are significantly different from the original agreement, potentially including higher royalty fees, brand fund fees, and other charges, as well as a modified territory.
Further conditions include refurbishing or renovating the studio to meet Body20's current image standards, executing a general release of claims against Body20, and ensuring that the operating principal and designated manager complete all required training. The franchisee must also secure the right to continue operating at the site from their landlord and be in full compliance with all agreements related to the studio, including timely payment of all amounts due and not receiving more than three default notices.
Prospective franchisees should carefully review Section 3.6 of the Franchise Agreement to understand the exact amount of the Successor Fee and consider all the requirements for obtaining a Successor Term. They should also be prepared for potentially higher fees and modified terms in the successor agreements.