Does the Body20 franchise agreement disclaim the representations made in the Franchise Disclosure Document?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Reliance on Contrary Representations.
You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement.
You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (d) Financial Performance Representations.
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents,
employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Studio or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates. Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the franchise agreement includes provisions regarding reliance on representations. Specifically, franchisees acknowledge that they are not relying on any representations or warranties beyond what is expressly stated in the Franchise Agreement and the FDD. This means Body20 aims to limit its liability to only what is written in those documents.
However, the Body20 FDD includes an important exception: For franchisees and studios subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, no signed statement can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Body20 or its representatives. This provision takes precedence over any conflicting terms in the franchise agreement.
In practical terms, this means that Body20 franchisees in those specified states retain their rights to pursue claims based on misrepresentations, even if they've signed documents suggesting otherwise. Prospective franchisees should carefully review these provisions with legal counsel to understand their rights and obligations, especially concerning what representations they can rely on when making their investment decision. Franchisees outside the listed states may be held to the terms of the agreement, so it is important to carefully review the FDD and franchise agreement.