Are the franchise agreement provisions summarized in Item 17 of the Body20 Franchise Disclosure Document subject to state law?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ment. Nothing in this Agreement creates or should be taken as evidence of an agreement or understanding by us, express or implied, to continue your association with us for any specified period.
- 11. Modification and Waiver. Your obligations under this Agreement cannot be waived or modified except in writing.
- 12. Governing Law. This Agreement is governed by the laws of the state in which our principal office is located.
- Attorney's Fees. If we have to take legal action to enforce this Agreement, we will be entitled to recover from you all of our costs, including reasonable attorney's fees, to the extent that we prevail on the merits.
- Representation. You certify that you have read and fully understood this Agreement, and that you entered into it willingly.
WITNESS EMPLOYEE or INDEPENDENT CONTRACTOR
EXHIBIT I TO THE FRANCHISE DISCLOSURE DOCUMENT
Additional State-Required Disclosures and Riders
ADDITIONAL DISCLOSURES FOR THE FRANCHISE DISCLOSURE DOCUMENT OF BODY20 FRANCHISOR LLC
The following are additional disclosures for the Franchise Disclosure Document of BODY20 Franchisor LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, AND WISCONSIN
The following provision applies only to franchisees and franchised 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, and/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.
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
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- SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF BUSINESS OVERSIGHT BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR DEVELOPMENT AGREEMENT OR FRANCHISE AGREEMENT.
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Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the franchise agreement provisions summarized in Item 17 are indeed subject to state law. Several states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, have specific provisions that apply to franchisees and franchised studios within their jurisdiction.
For instance, in these states, no statement or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This provision takes precedence over any conflicting terms in any document executed in connection with the franchise.
Furthermore, Illinois has additional stipulations, such as any provision requiring a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. The Illinois Franchise Disclosure Act also voids any provision designating jurisdiction or venue outside of Illinois for actions enforceable in Illinois, although arbitration outside of Illinois is permitted. The FDD also states that New York franchisees enjoy certain non-waiver rights under New York General Business Law. These state-specific regulations ensure that franchisees have certain protections and rights that cannot be waived, providing an additional layer of security and legal recourse.