What happens if a Body20 franchisee continues operating after the initial franchise term expires?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Sections 2.1 and 2.3 | Begins on the effective date of your Franchise Agreement and continues for 10 years from the date you open your Studio for business. If you continue operating after expiration, we may treat the term as extended on a month-to month basis until either we or you deliver notice ending that extension, in which case that interim period will terminate 30 days after the other party's receipt of the notice to terminate the interim period. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the initial franchise term lasts for 10 years from the studio's opening date. If a franchisee continues to operate their Body20 studio after this initial term expires without renewing, Body20 has the option to treat the term as extended on a month-to-month basis.
This month-to-month extension can be terminated by either Body20 or the franchisee. To end the extension, the terminating party must provide written notice to the other party. The termination then becomes effective 30 days after the other party receives the notice.
This arrangement provides flexibility for both Body20 and the franchisee. The franchisee can continue operations while deciding whether to renew, and Body20 maintains control over the brand and can ensure compliance even during this interim period. However, it's important to note that during this month-to-month extension, the terms of the original Franchise Agreement still apply unless otherwise agreed upon.