What is the 'Franchise Agreement' for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
l.** To simplify the language in this Disclosure Document, "we" or "us" means Body20 Franchisor LLC, the franchisor. "You" or "Franchisee" means the person or entity who buys the franchise, including all equity owners of a corporation, general partnership, limited partnership, limited liability, or any other type of entity (an "Entity"). If you are an Entity, each individual or Entity that has a legal or beneficial interest in you will be referred to as an "Owner." Your Owners and their spouses (as applicable) must sign the Payment and Performance Guarantee attached to the Franchise Agreement, the current form of which is attached to this Disclosure Document as Exhibit A (the "Franchise Agreement"), which means that all of the provisions of the Franchise Agreement will also apply to your Owners and their spouses (as applicable).
We are a limited liability company formed in Delaware on April 1, 2025. We do business under the "BODY20® " name (the "Brand"). Our principal business address is 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660. If we have an agent for service of process in your state, we disclose that agent in Exhibit D.
We became the franchisor of BODY20® studios ("Studios") on April 4, 2025. While we have never owned a Studio, as of the date of this Disclosure Document, we operate one Studio under the terms of a management agreement with the applicable franchisee and have agreed to purchase that Studio in August 2025. Although we reserve the right to do so, we have not offered franchises in other lines of business. We have no business activities other than those described in this Item 1.
Predecessor. Our predecessor, BODY20 Global USA, LLC, a Florida limited liability company ("Predecessor"), was formed on January 3, 2017. Predecessor was the franchisor of Studios from March 2018 to April 2025 and of BODY20® area representative businesses from March 2019 to April 2025. As of the date of this Disclosure Document, there are no BODY20® area representative businesses. Predecessor's principal business address is 207 San Jacinto Blvd., Suite 301, Austin, Texas 78701. Predecessor has never offered franchises in other lines of business. Predecessor's owners have had a minority ownership interest in one Studio operated in Texas under the terms of a franchise agreement since 2022. That Studio has been characterized in Item 20 as an "Affiliate-Owned Studio" for fiscal years 2022, 2023, and 2024. Under the terms of an asset purchase agreement dated as of April 4, 2025, we acquired from Predecessor and its owners substantially all of the assets relating to or used for the operation of Studios, including all right, title, and interest in and to the Marks and the System (each as defined below). We are not affiliated with Predecessor.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Franchise Agreement is the agreement that a franchisee signs to operate a Body20 studio. The document attached as Exhibit A to the FDD is the current form of the Franchise Agreement. If the franchisee is an entity, all owners and their spouses must sign a Payment and Performance Guarantee, making them subject to the Franchise Agreement's provisions.
For franchisees who sign a Development Agreement to open multiple Body20 studios, they (or their Affiliated Entities) must sign the then-current form of the Franchise Agreement for each studio. The terms in that form may differ from the Franchise Agreement included as Exhibit A in the FDD. However, the initial franchise fee for each studio developed under the Development Agreement will be the amount stated in the Development Agreement.
The Franchise Agreement specifies the Site Selection Area where the Body20 studio will be located. Under the Franchise Agreement, franchisees are not obligated or entitled to open additional studios. They also cannot sublicense the Marks or the System to others, use them at different locations, or use them in wholesale, e-commerce, or other distribution channels outside of operating the studio at the designated Site.