What is a Body20 franchisee acknowledging regarding reliance on representations made about the franchise opportunity?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Reliance on Contrary Representations.
You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement.
You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (d) Financial Performance Representations.
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents,
employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Studio or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates. Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and 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, 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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee acknowledges that they are not relying on any representations or warranties about the franchise opportunity except those expressly stated in the Franchise Agreement and the FDD. This means Body20 franchisees are agreeing that any promises, assurances, or predictions made outside of these official documents are not a basis for their decision to invest in the franchise.
This acknowledgement protects Body20 from potential legal claims based on verbal or informal promises made by its representatives. It reinforces the importance of the FDD and the Franchise Agreement as the primary sources of information for prospective franchisees. Franchisees should carefully review these documents and seek clarification on any points of concern before signing the agreement.
However, the FDD also states that in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin), no acknowledgement signed by the franchisee can waive claims under state franchise law, including claims of fraud or disclaiming reliance on statements made by Body20 or its representatives. This provision provides additional protection to franchisees in those states, ensuring they can still pursue legal action based on misrepresentations, even if they signed an agreement disclaiming reliance on such statements. This highlights the importance of understanding the specific franchise laws in the franchisee's state.
Furthermore, the FDD emphasizes that unless explicitly stated in the FDD, Body20 and its representatives have not made any representations regarding the historical or anticipated financial performance of any Body20 studio. Any financial information acquired from other franchisees is not endorsed or guaranteed by Body20. This underscores the risk involved in relying on unofficial financial projections and the need for franchisees to conduct their own independent financial analysis.