What must a Body20 franchisee execute for each Studio they develop within the Development Area?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. We desire to grant to you the right to develop multiple Studios within the Development Area in accordance with the Development Schedule (defined below), provided that you also must execute our then-current standard franchise agreement (each, a "Franchise Agreement") for each such Studio, which will govern the development and operation of such business.
- 3.2 Deadlines. You must enter into Franchise Agreements and develop and open Studios in accordance with the deadlines set forth in the Development Schedule. Signing Deadline. By each "Signing Deadline" specified in the Development Schedule, you must have signed our then-current standard form of Franchise Agreement for the applicable number of Studios in the Development Area specified on the Development Schedule. Opening Deadline. By each "Opening Deadline" specified in the Development Schedule, you must have the applicable number of Studios in the Development Area open and operating. Discretionary Extension. We may, in our sole discretion, extend any Signing Deadline or any Opening Deadline, which we may condition on your payment of an Extension Fee and execution of a general release.
The "Extension Fee" for each Studio will be $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such Studio is extended.
- (b) Subsequent Studios. For each additional Studio that you have the right to develop in accordance with the Development Schedule, you must sign our then-current Franchise Agreement, which may have materially different terms than the Initial Franchise Agreement, including different fees (though no Franchise Fee shall be owed under such agremeent) and territorial rights. You must sign a Franchise Agreement for a Studio before you may execute a lease, sublease, or purchase agreement intended for such Studio or commence construction of such Studio. We will not be obligated to offer you a Franchise Agreement for a Studio unless:
- 1. we have complied with all applicable franchise registration and disclosure laws and, if required by applicable laws, have provided you with a copy of our then-current Franchise Disclosure Document;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, a franchisee who obtains development rights to open multiple studios in a specific area must sign Body20's then-current standard franchise agreement for each studio. This agreement governs the development and operation of each individual Body20 studio. The franchisee must adhere to a development schedule, which includes signing deadlines for franchise agreements and opening deadlines for the studios.
Body20 may extend these deadlines at its discretion, potentially requiring the franchisee to pay an Extension Fee of $2,500 per month (or portion thereof) for each studio's signing or opening deadline that is extended. Any extension applies only to the specific studios for which it was granted and does not affect other deadlines within the development schedule.
Before executing a lease or starting construction on a Body20 studio, the franchisee must first sign the franchise agreement for that particular location. Body20 is not obligated to offer a franchise agreement unless they have met all franchise registration and disclosure requirements, including providing the franchisee with a current Franchise Disclosure Document, if required by law.