For a Body20 franchise, what conditions regarding compliance with Related Agreements must Franchisee Parties meet to be eligible for a Successor Term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) The Franchisee Parties have fully complied with this Agreement and all other agreements between any of the Franchisee Parties, on one hand, and us, our
Affiliates, and/or our approved vendors, on the other hand, related to Studio or any other Studios (collectively, the "Related Agreements"), including having (a) timely paid all amounts due under such agreements and (b) not received more than three default notices under such agreements;
- (h) At the time you provide written notice of your intent to enter into a Successor Term and at the expiration of the then-current term of this Agreement, the Franchisee Parties are in full compliance with all Related Agreements, including (i) operating all Studios in compliance with all System Standards (including all minimum quality, service, cleanliness, and/or health and safety standards) and (ii) being current (i.e., not delinquent) with respect to all fees or payments due;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, to be eligible for a Successor Term, the Franchisee Parties must meet specific conditions regarding compliance with all agreements related to the studio. These agreements, referred to as "Related Agreements," encompass all agreements between the franchisee, its operating principal, designated manager, Body20, its affiliates, and approved vendors.
To qualify for a Successor Term, the Franchisee Parties must have fully complied with all Related Agreements. This includes timely payment of all amounts due under these agreements and not having received more than three default notices under any of them. Furthermore, at the time of providing written notice of intent to enter a Successor Term and at the expiration of the current term, the Franchisee Parties must be in full compliance with all Related Agreements.
Compliance also extends to operating all studios in accordance with System Standards, which include minimum quality, service, cleanliness, and health and safety standards. Additionally, all fees and payments due must be current, meaning not delinquent. Meeting these conditions ensures that the franchisee remains in good standing with Body20 and its affiliates, maintaining the integrity and standards of the Body20 franchise system.
In summary, a Body20 franchisee seeking a Successor Term must maintain a strong record of compliance with all agreements, adhere to System Standards, and ensure all payments are up to date. This comprehensive compliance framework is designed to protect the Body20 brand and ensure consistent quality across all franchise locations.