Will a Body20 franchisee have further renewal or extension rights after the Successor Term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Successor Agreements will be modified as we deem necessary and appropriate to reflect changes we deem appropriate for such Successor Term, including (a) that the Studio is a developed and operating business, (b) that you are paying a Successor Fee (as defined in Section 3.6 (Successor Fee)) in lieu of an initial franchise fee, (c) any changes to the description of the Territory (which may make it smaller or larger), as we deem appropriate to reflect changes in demographics, competitive positioning, and our territorial policies since the Studio was originally developed, and (d) that you will have no further renewal or extension rights;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee will not have any further renewal or extension rights after the Successor Term. The initial term and any successor terms are collectively referred to as the "Term." A franchisee can only exercise the right to obtain a Successor Term if they provide written notice between six and twelve months before the current term expires.
To obtain a Successor Term, the franchisee must execute a successor Franchise Agreement, which may contain significantly different terms, including higher fees and a modified territory. The franchisee is also required to refurbish or renovate the studio to meet Body20's current image standards, complete all current training requirements, and execute a general release of claims against Body20.
Additionally, the franchisee must secure the right to continue operating at the site and be in full compliance with all agreements, including timely payments and adherence to system standards. Finally, the franchisee must pay a Successor Fee. After the Successor Term, the agreement explicitly states that there are no further renewal or extension rights, meaning the franchisee would not be able to renew their franchise agreement again.