What happens if there are unresolved issues during the sale of the Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor does not deliver this disclosure statement on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the state agency listed on Exhibit D.
- (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.
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.
- RELEASES. The following is added to the end of Sections 2.2(d), 4.3, 4.5, 13.4(d), 13.5, 13.6, and 15.7(d) of the Franchise Agreement:
Notwithstanding the foregoing, all rights enjoyed by you and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.5, as amended.
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, if Body20 does not deliver the disclosure statement on time, or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred. In such cases, the issue should be reported to the Federal Trade Commission in Washington, D.C., and the state agency listed on Exhibit D. This ensures that prospective franchisees are protected by law and have avenues for recourse if they encounter discrepancies or misrepresentations in the disclosure documents provided by Body20. This is a standard disclosure in franchise agreements to ensure transparency and legal compliance.
Furthermore, the FDD includes provisions that address the franchisee's reliance on representations made by Body20. Franchisees acknowledge that they are not relying on any representations or warranties, express or implied, furnished by Body20 or its representatives other than those expressly set forth in the Franchise Agreement and the FDD. However, for franchisees and studios subject to state franchise disclosure laws in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, 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 supersedes any other conflicting terms in the franchise documents, providing additional protection to franchisees in these states.
For franchisees in New York, the Rider to the Franchise Agreement provides additional protections. All rights and causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York remain in force to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.5, as amended. This means that Body20 franchisees in New York retain specific statutory rights that cannot be waived, offering a stronger legal standing in case of disputes or unresolved issues during the franchise sale or operation. Similarly, in Maryland, the general release required as a condition of renewal, sale, or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law, ensuring franchisees retain their rights under Maryland law.