Does the Body20 franchise agreement allow for operation after expiration of the term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
L, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION**
THE FRANCHISE RELATIONSHIP
The table below lists certain important provisions of the Franchise Agreement. You should read these provisions in the form of Franchise Agreement attached to this Disclosure Document as Exhibit A.
| 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. |
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, the franchise agreement does address the possibility of operating after the initial term expires. The standard franchise term lasts for 10 years, starting from the date the studio opens. If a franchisee continues to operate the Body20 studio after this initial term, the agreement specifies that Body20 may treat the term as extended on a month-to-month basis.
This month-to-month extension can be terminated by either Body20 or the franchisee, providing some flexibility. The termination becomes effective 30 days after the other party receives notice. This arrangement allows for continued operation while both parties decide on a more permanent solution, such as a renewal.
Body20 also offers the option for franchisees to renew for two additional consecutive terms of five years each, provided certain conditions are met. These conditions include notifying Body20 of the intent to renew within a specific timeframe, signing successor agreements, renovating the studio to current specifications, executing a general release, completing training requirements, securing the right to continue operating at the site, complying with all agreements, and paying a successor fee. This provides a more structured path for extending the franchise agreement beyond the initial term, offering longer-term security for the franchisee if all requirements are satisfied.
The month-to-month extension provides a safety net, allowing continued operation while formal renewal terms are negotiated or finalized. However, it's crucial for franchisees to be aware of the conditions required for a full renewal to ensure they can continue operating their Body20 studio beyond the initial 10-year term.