If Body20 or its affiliates offer deals, who has the right to collect and retain the revenue from such deals?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) Deals. We or our Affiliates have the right, but not the obligation to, offer deals or other discounted Session promotions, coupons, vouchers, memberships, reciprocity programs, or gift certificates on third-party websites or apps (such as Groupon, ClassPass, etc.) or other similar promotions designed to drive customers to Studios ("Deals"). If we or our Affiliates offer any Deals, we and our Affiliates have the right to collect and retain any revenue from such Deals, including any customer payments to such third parties. You must provide Sessions or other products or services to any customers redeeming any vouchers, gift certificates, Sessions, or coupons related to such Deals in accordance with the standards and other terms that we periodically specify. Except as we otherwise approve, you must treat customers who purchase Deals in the same manner as any other customer and must not limit their access to your Studio or Sessions. We may, in our sole discretion, pay to you all, or a portion of, any revenue that we receive that is directly related to Deals that are redeemed by customers at your Studio, but we are not obligated to do so and the amount of such reimbursement, if any, may be less than the standard price you charge for such Sessions, products, or services.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 or its affiliates have the right to offer deals or other discounted session promotions, coupons, vouchers, memberships, reciprocity programs, or gift certificates on third-party websites or apps. These "Deals" are designed to attract customers to Body20 studios.
Specifically, Body20 and its affiliates have the right to collect and retain any revenue generated from these Deals, including customer payments made to third parties. However, the franchisee is obligated to provide the sessions, products, or services to customers who redeem vouchers, gift certificates, sessions, or coupons related to these Deals, adhering to the standards and terms specified by Body20.
While franchisees must treat customers who purchase Deals in the same manner as other customers, Body20 may, at its discretion, pay the franchisee all or a portion of the revenue received from Deals redeemed at their studio. However, Body20 is not obligated to do so, and any reimbursement may be less than the standard price the franchisee charges for such sessions, products, or services. This means that franchisees may not receive full compensation for services rendered through these deals.