Where can I find more information about owner's participation, management, and staffing obligations for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times that your Studio is open for business, it must be under the personal, onpremises supervision of a Required Trainee. Your Required Trainees must successfully complete our training program and any other training programs that we may require. You may not permit your Studio to be operated, managed, directed, or controlled by any other person without our prior written consent.
Your Operating Principal must have at least a 10% ownership interest in your Entity and must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a Designated Manager to manage the day-to-day business of your Studio, who may also be the Operating Principal. The Designated Manager is not required to have an ownership interest in your Entity. You must provide us with written notice of your Operating Principal and Designated Manager at least 60 days prior to opening and may not change your Operating Principal and Designated Manager without our prior approval.
We may also require you to obtain from your officers, directors, Designated Managers, fitness coaches, your Owner's spouses (to the extent that they are not required to sign the Guarantee (as defined below)), and other individuals that we may designate executed agreements containing nondisclosure and noncompete covenants in a form acceptable to us, such as the form attached as Exhibit H, which specifically identify us as having the independent right to enforce them.
If you are an Entity, each Owner, including the Operating Principal, and his/her spouse (as applicable) must sign the Payment and Performance Guarantee (the "Guarantee") attached to the Franchise Agreement, assuming and agreeing to discharge all obligations of the franchisee under the Franchise Agreement and agreeing to comply with the confidentiality, indemnification, covenant not to compete, and assignment provisions of the Franchise Agreement. If you are a party to a Development Agreement, each individual or Entity that has a legal and/or beneficial interest in you must sign the Payment and Performance Guarantee attached to the Development Agreement.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 37–38)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Item 15 outlines the franchisee's obligation to participate in the actual operation of the franchise business. It states that during business hours, the studio must be supervised by a Required Trainee who has completed the Body20 training program. The franchisee cannot allow anyone else to manage or control the studio without prior written consent from Body20.
Furthermore, if the franchisee is an entity, the Operating Principal must have at least 10% ownership in the entity, possess authority over all business decisions related to the studio, and have the power to bind the franchisee in dealings with Body20. A Designated Manager must also be appointed to manage the studio's day-to-day operations, and this individual may also be the Operating Principal but is not required to have ownership in the entity. Body20 requires written notice of the Operating Principal and Designated Manager at least 60 days before opening and prior approval for any changes to these roles.
Body20 may also require officers, directors, Designated Managers, fitness coaches, owners' spouses, and other designated individuals to sign agreements containing nondisclosure and noncompete covenants. These agreements, in a form acceptable to Body20 and potentially found in Exhibit H, give Body20 the independent right to enforce them. Additionally, each Owner, including the Operating Principal, and their spouse must sign a Payment and Performance Guarantee attached to the Franchise Agreement, agreeing to fulfill the franchisee's obligations and comply with confidentiality, indemnification, non-compete, and assignment provisions.