What is a Body20 franchisee's responsibility regarding compliance with Applicable Laws?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
to take legal action to enforce this Agreement, we will be entitled to recover from you all of our costs, including reasonable attorney's fees, to the extent that we prevail on the merits. 14. Representation. You certify that you have read and fully understood this Agreement, and that you entered into it willingly.
| WITNESS | EMPLOYEE or |
|---|---|
| INDEPENDENT CONTRACTOR |
EXHIBIT I TO THE FRANCHISE DISCLOSURE DOCUMENT
Additional State-Required Disclosures and Riders
ADDITIONAL DISCLOSURES FOR THE FRANCHISE DISCLOSURE DOCUMENT OF BODY20 FRANCHISOR LLC
The following are additional disclosures for the Franchise Disclosure Document of BODY20 Franchisor LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, AND WISCONSIN
The following provision applies only to franchisees and franchised 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, and/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.
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
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- SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF BUSINESS OVERSIGHT BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR DEVELOPMENT AGREEMENT OR FRANCHISE AGREEMENT.
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- OUR WEBSITE, www.BODY20.com, HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT. ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT AT www.dbo.ca.gov.
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- The following is added at the end of Item 3:
Neither we, our parent, predecessor or affiliates nor any person in Item 2 of the Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
Based on the 2025 Body20 Franchise Disclosure Document, franchisees in certain states cannot waive claims under applicable state franchise law. Specifically, for franchisees and franchised studios subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, no signed statement, questionnaire, or acknowledgment can waive claims related to state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This provision overrides any conflicting terms in other documents.
For franchisees in Illinois, the Illinois Franchise Disclosure Act stipulates that any condition or provision requiring a franchisee to waive compliance with the Act or any other Illinois law is void. However, this does not prevent franchisees from entering settlement agreements or arbitrating claims under Title 9 of the United States Code.
In Maryland, the general release required for renewal, sale, or transfer of the franchise will not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. Additionally, Maryland law will govern claims arising under the Maryland Franchise Registration and Disclosure Law, and franchisees retain the right to bring lawsuits in Maryland for claims under that law, subject to arbitration obligations. Any limitations on claims will not reduce the three-year statute of limitations for claims under the Maryland Franchise Registration and Disclosure Law.
For franchisees in Washington, any provisions in the franchise agreement that prohibit communication with regulators are void and unenforceable. This ensures that franchisees can freely communicate with regulatory bodies without fear of reprisal, aligning with the state's franchise investment protection act.