Where can I find information about accounting and reporting for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 8 Records, Reports, Audits, and Inspections
8.1 Bookkeeping and Records. You agree to keep complete and accurate books, records, and accounts of all business conducted under this Agreement in accordance with generally accepted accounting principles. You must preserve all of your books and records in hard copy or in a format from which hard copies can be readily generated for at least five years from the date of preparation or such longer period as may be required by law. You must maintain such information and records on the Technology System as we may require from time to time in the Manuals and you acknowledge and agree that we will have access to that data remotely via
a network connection that we will specify. At our request, you must retain and use, at your expense, the services of an accountant or accounting firm that we approve.
- 8.2 Reports and Financial Statements. You agree to submit financial and operational reports and records to us at the times and in the manner specified in the Manuals. Upon our written request, by April 15 of each year, you must submit your balance sheet and income statement for the previous calendar year. With respect to your year-end income statement and balance sheet, you or the Operating Principal must certify that the income statement and balance sheet are correct and complete and that they have been prepared in accordance with generally accepted accounting principles. We have the right to demand audited financial statements if an Event of Default has occurred within the last calendar year. In addition, you must provide us within 15 days after our request, exact copies of federal and state income and other tax returns and any other forms, records, books, reports and other information that we periodically require relating to the Studio or you.
- 8.3 Additional Information. You shall respond promptly to requests from us for clarification and/or additional information regarding any matter entrusted to you under this Agreement. We may from time to time require information about your financial condition, earnings, sales, profits, costs, expenses, and performance to provide a basis for providing our prospective franchisees with information concerning actual or potential earnings or to comply with Applicable Laws governing the sale of franchises. You will provide such information promptly upon our request, and you will certify that such information is true and complete in all material respects.
8.4 Inspections and Right to Obtain Information.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, details regarding accounting and reporting can be found in Section 8 of the Franchise Agreement, specifically addressing records, reports, audits, and inspections.
As a Body20 franchisee, you must maintain complete and accurate books, records, and accounts of all business activities, adhering to generally accepted accounting principles. These records must be preserved for at least five years, either in hard copy or a format that allows for easy hard copy generation, unless a longer period is legally required. The franchisor also mandates that you maintain specific information and records on the Technology System, granting them remote access to this data via a specified network connection. At Body20's request, you may be required to hire an accountant or accounting firm approved by them, at your own expense.
Furthermore, you are obligated to submit financial and operational reports and records to Body20 according to the schedule and manner outlined in the Manuals. By April 15th of each year, you must provide your balance sheet and income statement for the previous calendar year. These financial statements must be certified as correct, complete, and prepared in accordance with generally accepted accounting principles by you or the Operating Principal. Body20 retains the right to demand audited financial statements if an Event of Default occurred within the last calendar year. Additionally, you must provide copies of federal and state income and other tax returns, along with any other requested information, within 15 days of their request.
You are also required to promptly respond to Body20's requests for clarification or additional information on any matter related to the Franchise Agreement. Body20 may periodically request information about your financial condition, earnings, sales, profits, costs, expenses, and performance to provide prospective franchisees with earnings information or to comply with applicable franchise laws. You must certify that all provided information is true and complete in all material respects.