Does the Body20 franchise agreement release cover claims arising before a specific date?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
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.
- RELEASES. The following is added to the end of Sections 2.2(d), 4.3, 4.5, 13.4(d), 13.5, 13.6, and 15.7(d) of the Franchise Agreement:
Notwithstanding the foregoing, all rights enjoyed by you and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.5, as amended.
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 releases, particularly concerning claims arising under specific state franchise laws. In Maryland, any general release required as a condition of renewal, sale, or transfer will not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that Body20 franchisees in Maryland retain their rights to pursue claims under this law, even when signing a general release in connection with franchise renewal, sale, or transfer.
Similarly, for Body20 franchisees in New York, the franchise agreement specifies that all rights and causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York remain in effect. This is to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.5, as amended. This ensures that New York franchisees do not waive their rights under New York franchise law through general releases or other provisions of the franchise agreement.
Furthermore, a general provision applies to franchisees and studios subject to state franchise disclosure laws in several states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. According to the FDD, no statement, questionnaire, or acknowledgement signed by the franchisee in connection with the franchise relationship can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This provision supersedes any other conflicting terms in any document executed in connection with the franchise, providing additional protection for franchisees in these states.