factual

For Body20, is the franchise agreement binding on either party before it is executed by both parties?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 17.13 Execution.

This Agreement shall not be binding on either party until it is executed by both parties.

This Agreement may be executed in two or more counterparts, each of which will be deemed an original, and all of which will constitute one and the same instrument.

Documents executed, scanned, and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this Agreement and all related matters, with such scanned and electronic signatures having the same legal effect as original signatures.

Source: Item 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, the franchise agreement is not binding on either party until it has been fully executed by both parties. This means that neither Body20 nor the franchisee is legally obligated by the terms of the agreement until both have signed it. This clause protects both parties, ensuring that there is a mutual understanding and agreement before the franchise relationship officially begins.

This requirement is a fairly standard practice in franchising. It gives both Body20 and the prospective franchisee time to review the agreement thoroughly, seek legal counsel, and ensure that all terms are acceptable before committing to the franchise. It also provides a clear point at which the agreement becomes legally enforceable.

Furthermore, the Body20 franchise agreement allows for execution in counterparts, meaning that the agreement can be signed in separate copies, which together constitute one and the same agreement. The agreement also states that documents executed, scanned, and transmitted electronically, as well as electronic signatures, are considered original signatures and have the same legal effect as original signatures. This facilitates the signing process, especially when the parties are not in the same location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.