What happens if a Body20 franchisee or owner makes material misrepresentations in their franchise application?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the consequences for a franchisee making material misrepresentations in their franchise application are addressed differently depending on the state. For franchisees 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, any signed statement, questionnaire, or acknowledgment related to the franchise commencement cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This provision takes precedence over any conflicting terms in executed documents.
This means that in these specific states, a Body20 franchisee retains the right to pursue legal claims, such as fraud, if they believe they were induced into the franchise agreement based on misrepresentations. The franchisee's ability to claim reliance on statements made by Body20 is also protected. This ensures that franchisees in these states are not prevented from seeking legal recourse due to misstatements made during the franchise application process.
For prospective Body20 franchisees in states not listed above, the FDD does not explicitly detail the protections against misrepresentations in the franchise application. It is important for potential franchisees to consult with a legal professional to understand their rights and remedies in case of misrepresentations during the franchise application process. They should also inquire with Body20 about their policies and procedures for addressing such issues in states where these specific protections are not mandated by state law.