If Body20 establishes a Franchisee Advisory Council, what are the franchisee's obligations regarding participation?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee Advisory Council. We may establish an advisory council of franchisees ("Franchisee Advisory Council") using a form and process set forth in the Manuals to advise us on various issues and strategies. The Franchisee Advisory Council will have an advisory role but no operational or decision-making power. We may change the structure and process of the Franchisee Advisory Council or dissolve the Franchisee Advisory Council at any time. If we establish a Franchisee Advisory Council, you must participate in all council-related activities and meetings and must pay any dues related to the administration of the Franchisee Advisory Council.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if Body20 establishes a Franchisee Advisory Council, franchisees must participate in all council-related activities and meetings. Franchisees are also obligated to pay any dues related to the administration of the Franchisee Advisory Council.
The Franchisee Advisory Council is designed to advise Body20 on various issues and strategies, utilizing a form and process detailed in the manuals. However, the council's role is purely advisory, with no operational or decision-making power. This means that while franchisees must participate and provide input, the ultimate decisions remain with Body20.
Body20 retains the right to change the structure and process of the Franchisee Advisory Council or even dissolve it entirely at any time. This highlights that while franchisees are required to participate and pay dues, the existence and nature of the council are at the discretion of Body20. Prospective franchisees should consider this when evaluating the level of influence they might have on the brand's direction through the council.