Are Body20 franchisees allowed to rely on representations made by the franchisor that are contrary to the FDD?
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.
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 the 2025 Body20 Franchise Disclosure Document, franchisees generally cannot rely on representations made by Body20 that contradict the FDD, with some exceptions for franchisees in specific states. The franchise agreement stipulates that franchisees acknowledge they are not relying on any representations or warranties from Body20 or its representatives that are not expressly outlined in the Franchise Agreement and the FDD. This provision is designed to ensure that franchisees base their investment decisions solely on the official documented information provided by Body20.
However, there's a crucial exception for franchisees and studios subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. In these states, any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims under applicable state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This means that franchisees in these states retain the right to pursue legal action based on representations made by Body20, even if those representations are not documented in the FDD or Franchise Agreement.
This acknowledgement aims to protect franchisees in states with strong franchise laws, ensuring they are not bound by clauses that could prevent them from seeking legal recourse if they believe they were misled. Prospective Body20 franchisees should carefully review these provisions, especially if they are located in one of the listed states, and consult with legal counsel to fully understand their rights and obligations. The franchisee receipt included in the FDD also includes questions about whether the franchisee has relied on any representations that are not in the FDD, and whether they have had the opportunity to consult with an attorney.