What is a Body20 franchisee's obligation regarding purchasing products?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
6.8 Products, Supplies, Operating Assets, and Services.
- (a) Purchases. We have the right to require that products, supplies, Operating Assets, and services that you purchase for resale or purchase or lease for use in your Studio: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from suppliers or service providers that we have expressly approved; and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our Affiliates or a buying cooperative organized by us or our Affiliates). To the extent that we establish specifications, require approval of suppliers or service providers, or designate specific suppliers or service providers for particular items or services, we will publish our requirements in the Manuals.
- (b) Products and Services You May Offer. You may offer in the Studio to customers only the products, services, and Sessions that we have approved in writing. In addition, you must offer the specific products, services, and Sessions that we require in the Manuals or otherwise in writing. We may change these specifications periodically, and we may designate specific products or services as optional or mandatory. You must offer all products, services, or Sessions that we designate as mandatory. You may sell products and services only in the varieties, forms, and packages that we have approved in accordance with our System Standards. You must maintain a sufficient supply of required products to meet the inventory standards we prescribe in the Manuals (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).
- (c) Revenue from Purchases. You acknowledge and agree that we and/or our Affiliates may derive revenue based on your purchases and leases, including from charging you for products and services we or our Affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by suppliers and/or distributors that we designate or approve for some or all of our franchisees. We and our Affiliates may use all amounts received from suppliers and/or distributors, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our Affiliates deem appropriate. If you derive any revenue based on payments or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement and such revenue shall be included as part of your Gross Sales.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 55–56)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 has the right to mandate franchisees to purchase or lease products, supplies, operating assets, and services that meet certain criteria. These criteria include meeting the specifications Body20 establishes, being a specific brand, kind, or model, and being purchased or leased only from suppliers or service providers that Body20 has expressly approved. Furthermore, Body20 can require that these items be purchased or leased only from a single source they designate, which may include Body20 itself, its affiliates, or a buying cooperative organized by them.
Body20 publishes these requirements in their manuals, including specifications, approved suppliers or service providers, and designated suppliers or service providers for particular items or services. Franchisees are obligated to offer only the products, services, and sessions that Body20 has approved in writing. Additionally, franchisees must offer the specific products, services, and sessions that Body20 requires in the manuals or in writing, with Body20 reserving the right to change these specifications periodically and designate specific products or services as optional or mandatory.
Franchisees must offer all products, services, or sessions that Body20 designates as mandatory and sell products and services only in the varieties, forms, and packages that Body20 has approved in accordance with their System Standards. Moreover, franchisees must maintain a sufficient supply of required products to meet the inventory standards prescribed in the manuals or to meet reasonably anticipated customer demand if specific standards have not been prescribed. Body20 also notes that they and/or their affiliates may derive revenue from franchisee purchases and leases, including from charging for products and services, and from promotional allowances, volume discounts, and other payments made by designated or approved suppliers and/or distributors.