If Body20 assumes management of the Body20 studio, can they appoint a third party to manage the studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(viii) enter the Studio's premises and assume the management of the Studio ourselves or appoint a third party (who may be our Affiliate) to manage the Studio. We or our appointee may charge you the Management Fee during the period of management. All funds from the operation of the Studio while we or our appointee assumes its management will be kept in a separate account, and all of the expenses of the Studio will be charged to that account. We or our appointee has a duty to utilize only reasonable efforts and will not be liable to you for any debts, losses, or obligations the Studio incurs, or to any of your creditors for any products or services the Studio purchases, while managing it. You shall not take any action or fail to take any action that would interfere with our or our appointee's exclusive right to manage the Studio and may, in our sole discretion, be prohibited from visiting the Studio so as to not interfere with its operations. Our (or our appointee's) management of the Studio will continue for intervals lasting up to 90 days each (and, in any event, for no more than a total of one year), and we will during each interval periodically discuss the Studio's status with you.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if the franchisee fails to meet their obligations under the agreement, Body20 has the right to assume management of the studio. In this scenario, Body20 can either manage the studio themselves or appoint a third party, potentially an affiliate, to manage the studio on their behalf.
The document specifies that Body20 or their appointee may charge a Management Fee during the period of management. All funds generated from the studio's operation during this period will be kept in a separate account, and all studio expenses will be charged to that account. Body20 or their appointee is only required to utilize reasonable efforts in managing the studio and will not be liable for any debts, losses, or obligations the studio incurs during their management.
The franchisee is prohibited from interfering with Body20's or their appointee's management of the studio and may even be restricted from visiting the studio to avoid interference with operations. This management period can last for intervals of up to 90 days each, but the total management period will not exceed one year. During each interval, Body20 will periodically discuss the studio's status with the franchisee.