What is the Body20 franchisee's obligation regarding requests for clarification or additional information from the franchisor?
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)
The 2025 Body20 Franchise Disclosure Document states that franchisees should not rely on any representations about the franchise opportunity made by Body20, its affiliates, or their officers, directors, owners, or agents that contradict the information provided in the FDD or the Franchise Agreement. Franchisees are expected to rely solely on the information explicitly outlined in these documents. This means that any verbal promises or assurances not documented in the FDD or Franchise Agreement should not be considered binding.
Specifically, Body20 does not make any representations, unless stated in the FDD, regarding the historical or anticipated revenues, earnings, or profitability of any Body20 studio. Any financial information acquired from other franchisees is not endorsed or guaranteed by Body20, and the company makes no representation about the accuracy of such information. This underscores the importance of conducting independent due diligence and not relying solely on anecdotal evidence or unofficial projections.
However, the FDD includes an exception for franchisees and studios subject to state 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, no statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This provision ensures that franchisees in these states retain their legal rights and protections, regardless of any agreements they may sign.
In Washington state, specific regulations further protect franchisees. Any provisions in the franchise agreement that prohibit franchisees from communicating with or complaining to regulators are void and unenforceable. Additionally, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under franchise law or disclaim reliance on statements made by Body20 or its representatives. These state-specific riders reinforce the franchisee's right to seek clarification and raise concerns without fear of reprisal or waiver of legal rights.