Where can I find the Body20 Franchise Agreement that contains important provisions regarding renewal, termination, transfer, and dispute resolution?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION]
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Sections 2.1 and 2.3 | Begins on the effective date of your Franchise Agreement and continues for 10 years from the date you open your Studio for business. If you continue operating after expiration, we may treat the term as extended on a month-to month basis until either we or you deliver notice ending that extension, in which case that interim period will terminate 30 days after the other party's receipt of the notice to terminate the interim period. |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the conditions, you may obtain two additional consecutive successor terms of five years each. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You have notified us of your intent to renew at least six months in advance but no more than 12 months in advance; you and your Owners (as applicable) have signed and returned to us the successor franchise agreement, owner's guaranty, and ancillary agreements (modified as we consider necessary to reflect changes that we consider appropriate for the successor term), which may have materially different terms and conditions than your original Franchise Agreement; you have refurbished or renovated the Studio to our then-current specifications; you and your Owners have executed a general release in favor of us and our affiliates; you have completed, and have had your Operating Principal and Designated Manager complete, our then-current training requirements; you have secured from your landlord the right to continue operating at the Site for the remainder of the successor term; you, your Owners, and your affiliates (the ("Franchisee Parties") have fully complied with the Franchise Agreement and all other agreements between any Franchisee Party and us, our affiliates, and/or our approved vendors related to the Studio or any other Studios (each, a "Related Agreement"); at the time you provide notice of your intent to enter into a successor term and at the expiration of the then-current term of the Franchise Agreement, the Franchisee Parties are in full compliance with all Related Agreements; and you have paid us the Successor Fee. |
| d. | Termination by franchisee | Section 14.3 | If we commit a material breach of the Franchise Agreement and we fail to cure the breach or take reasonable steps to begin curing the breach within 60 days after receiving notice from you, you may terminate the Franchise Agreement. |
| Provision | Section in Franchise Agreement | Summary | |
| ---- | ---------------------------------------------------------------------------------------------- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| u. | Dispute resolution by arbitration or mediation | Sections 16.2 and 16.3 | Prior to filing most proceedings, a party must submit the dispute to non-binding mediation. Except for disputes arising under the Lanham Act, disputes that otherwise relate to the validity or ownership of any of the Intellectual Property, disputes that involve enforcement of our intellectual property rights or protection of our Proprietary Information, and disputes related to payments of amounts that you owe to us or our affiliates, all disputes will be resolved by binding arbitration at the American Arbitration Associations' offices or other suitable office that we select in the metropolitan area in which our principal place of business is then located (currently, Newport Beach, California) (subject to state law). |
| w. | Choice of law | Section 16.1 | Except for Federal Arbitration Act and other federal law, the laws of the State of Delaware apply to all claims (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Item 17 provides a summary of provisions related to renewal, termination, transfer, and dispute resolution, and it also indicates the specific sections within the Franchise Agreement where these provisions are detailed.
For instance, the length of the franchise term is addressed in Sections 2.1 and 2.3 of the Franchise Agreement, which states that the franchise term begins on the effective date of the Franchise Agreement and continues for 10 years from the date the studio opens. The requirements for franchisees to renew or extend their franchise term are found in Section 2.2 of the Franchise Agreement. This section specifies conditions such as notifying Body20 of the intent to renew at least six months in advance, signing a successor franchise agreement, refurbishing the studio, completing training requirements, and paying a successor fee.
Regarding termination, Section 14.3 of the Franchise Agreement outlines the franchisee's right to terminate the agreement if Body20 commits a material breach and fails to cure it within 60 days after receiving notice. Dispute resolution by arbitration or mediation is covered in Sections 16.2 and 16.3 of the Franchise Agreement, which details the process for submitting disputes to non-binding mediation and resolving disputes through binding arbitration, with certain exceptions for disputes related to intellectual property or payments owed to Body20. The choice of law is specified in Section 16.1 of the Franchise Agreement, indicating that the laws of the State of Delaware apply to all claims, except for the Federal Arbitration Act and other federal law.