What is a Body20 'Franchise' as defined in the disclosure document?

According to Body20's 2025 Franchise Disclosure Document, a 'Franchise' is defined as the opportunity to become a franchisee to develop and operate one or more Studios. These Body20 Studios offer body training exercises using state-of-the-art electro-muscle stimulation (EMS) technology and equipment, along with related products and services.

For a prospective franchisee, this means they are purchasing the right to open and run a Body20 studio that utilizes EMS technology for fitness training. The franchisee will operate under the Body20 brand, Marks, and System, which includes specific operating procedures, studio designs, equipment specifications, and training programs. The franchisee is granted the right to use Body20's established system and brand to offer these services.

The Franchise Agreement specifies that the franchisee has no obligation or right to open additional studios unless they sign a Development Agreement. Furthermore, the franchisee cannot sublicense the Marks or System, operate outside the designated Site, or engage in wholesale or e-commerce distribution other than through the physical studio location. This ensures that the franchisee's operations are confined to the agreed-upon location and business model.

Body20 also offers a Development Agreement for qualified franchisees who want to develop multiple studios within a designated territory. This agreement requires franchisees to adhere to a predetermined development schedule. If the franchisee fails to meet this schedule, Body20 has the right to terminate the Development Agreement, resulting in the loss of development rights and forfeiture of any unapplied development fees. However, the Franchise Agreements for already opened studios will not be terminated solely due to the termination of the Development Agreement.