Does the Body20 Franchise Agreement specify any performance-based requirements for renewal?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Sections 2.1 and 2.3 | Begins on the effective date of your Franchise Agreement and continues for 10 years from the date you open your Studio for business. If you continue operating after expiration, we may treat the term as extended on a month-to month basis until either we or you deliver notice ending that extension, in which case that interim period will terminate 30 days after the other party's receipt of the notice to terminate the interim period. |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the conditions, you may obtain two additional consecutive successor terms of five years each. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You have notified us of your intent to renew at least six months in advance but no more than 12 months in advance; you and your Owners (as applicable) have signed and returned to us the successor franchise agreement, owner's guaranty, and ancillary agreements (modified as we consider necessary to reflect changes that we consider appropriate for the successor term), which may have materially different terms and conditions than your original Franchise Agreement; you have refurbished or renovated the Studio to our then-current specifications; you and your Owners have executed a general release in favor of us and our affiliates; you have completed, and have had your Operating Principal and Designated Manager complete, our then-current training requirements; you have secured from your landlord the right to continue operating at the Site for the remainder of the successor term; you, your Owners, and your affiliates (the ("Franchisee Parties") have fully complied with the Franchise Agreement and all other agreements between any Franchisee Party and us, our affiliates, and/or our approved vendors related to the Studio or any other Studios (each, a "Related Agreement"); at the time you provide notice of your intent to enter into a successor term and at the expiration of the then-current term of the Franchise Agreement, the Franchisee Parties are in full compliance with all Related Agreements; and you have paid us the Successor Fee. |
| d. | Termination by franchisee | Section 14.3 | If we commit a material breach of the Franchise Agreement and we fail to cure the breach or take reasonable steps to begin curing the breach within 60 days after receiving notice from you, you may terminate the Franchise Agreement. |
| Provision | Section in Franchise Agreement | Summary | |
| ---- | ------------------------------------------- | -------------------------------------- | ---------------------------------------------------- |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Franchise Agreement does outline specific requirements for renewal or extension of the franchise term. A Body20 franchisee can obtain two additional consecutive successor terms of five years each if they meet certain conditions.
The requirements include notifying Body20 of the intent to renew at least six months, but no more than 12 months, in advance. The franchisee and their Owners must sign and return the successor franchise agreement, owner's guaranty, and ancillary agreements, which may be modified by Body20 and have materially different terms than the original agreement. The franchisee must also refurbish or renovate the studio to Body20's then-current specifications and execute a general release in favor of Body20 and its affiliates.
Furthermore, the Operating Principal and Designated Manager must complete Body20's then-current training requirements. The franchisee must secure the right to continue operating at the site for the remainder of the successor term from their landlord. Critically, the Franchisee Parties must be in full compliance with the Franchise Agreement and all other agreements between any Franchisee Party and Body20, its affiliates, and/or its approved vendors related to the Studio or any other Studios at the time of providing notice of intent to enter into a successor term and at the expiration of the current term. Finally, the franchisee must pay Body20 the Successor Fee.
These conditions are typical in franchising, as franchisors want to ensure that franchisees are up-to-date with brand standards, training, and legal requirements before granting a renewal. The 'Successor Fee' is also a common practice, allowing the franchisor to recoup costs associated with the renewal process and potentially generate additional revenue. A prospective Body20 franchisee should carefully review these requirements and consider the potential costs and obligations associated with renewing their franchise agreement.