If Body20 does not exercise its right to operate the Body20 studio, can I be required to continue operating it?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not exercise our right to operate the Studio, we may require you to continue to operate the Studio in accordance with this Agreement during the period between the expiration or termination of this Agreement through (i) the date on which we decide to decline our right to exercise this option (or the expiration of the option, if we fail to provide an Exercise Notice by the deadline) or (ii) the closing of our purchase.
However, we may, at any time during that period, assume the management of the Studio ourselves or appoint a third party (who may be our Affiliate) to manage the Studio pursuant to the terms of Section 15.6 (Our Right to Operate).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if Body20 does not exercise its right to operate the studio, you may be required to continue operating the Body20 studio. Specifically, Body20 may require you to continue operating the studio in accordance with the Franchise Agreement during the period between the expiration or termination of the agreement. This period extends until either Body20 decides to decline its right to exercise its option to purchase the studio (or the option expires if Body20 fails to provide an Exercise Notice by the deadline) or until the closing of Body20's purchase of the studio.
However, Body20 retains the right to assume management of the studio itself or appoint a third party to manage the studio at any time during that period, according to the terms outlined in Section 15.6 (Our Right to Operate) of the Franchise Agreement. This means that even if you are initially required to continue operations, Body20 can step in and take over management at any point.
This clause ensures that Body20 can maintain continuous operation of the studio during the transition period after the franchise agreement ends, either by having you continue to run it temporarily or by taking over management themselves. As a prospective franchisee, it's important to understand that you might be obligated to continue operating the studio even after the agreement's expiration or termination, but this obligation is not indefinite and is subject to Body20's decision to either purchase the studio or assume management.