What happens if a Body20 franchisee is unable to execute a Franchise Agreement by the Signing Deadline because Body20 is unable to timely deliver a required Franchise Disclosure Document?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are unable to execute a Franchise Agreement by the Signing Deadline because we are unable to timely deliver a required Franchise Disclosure Document (due to any lapse or expiration of our franchise registration, because we are in the process of amending such documents or registration, or for any other reason), we will adjust such Signing Deadline and Opening Deadline for the applicable Studio to take into consideration the date on which we were able to provide you with a Franchise Disclosure Document, without requiring payment of an Extension Fee or the execution of a general release.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee is unable to execute a Franchise Agreement by the Signing Deadline because Body20 could not deliver a timely Franchise Disclosure Document, Body20 will adjust the Signing Deadline and Opening Deadline for the applicable studio. This adjustment considers the date on which Body20 was able to provide the Franchise Disclosure Document.
Importantly, this adjustment occurs without requiring the franchisee to pay an Extension Fee or execute a general release. Typically, Body20 may extend any Signing Deadline or Opening Deadline at its discretion, but this is usually conditional on the franchisee paying an Extension Fee and executing a general release. The Extension Fee is normally $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such studio is extended.
This provision protects prospective Body20 franchisees from penalties or fees when delays in the franchise process are due to Body20's failure to provide the necessary documentation on time. It ensures that franchisees are not financially penalized for circumstances beyond their control, specifically those related to Body20's compliance with franchise disclosure requirements.