If a Body20 franchisee fails to meet the Pre-Opening Membership Requirement, what is the alternative to termination of the agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
y of Sports Medicine, the American Council on Exercise, or the International Sports Sciences Association (which we may provide through our online training university), or any training required or recommended by our approved third-party equipment suppliers.
- E. Section 7.3(c) (Marketing Spending Requirement) is amended by adding the following to the end of that Section:
Alternatively, we may require you to pay us the Marketing Spending Requirement, which we will use to conduct local advertising and promotional activities for your Studio on your behalf in a manner that we determine in our sole discretion.
**F. Section 7.3(d) (Grand Opening Advertisi
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee fails to meet the Pre-Opening Membership Requirement, Body20 may offer an alternative to terminating the franchise agreement. Instead of termination, Body20 may require the franchisee to spend an additional $10,000 for grand opening advertising and promotion for the studio.
This alternative provides the franchisee with an opportunity to rectify the initial shortfall in pre-opening memberships through increased marketing efforts. The $10,000 will be used by Body20 to conduct local advertising and promotional activities for the franchisee's studio, with the specific strategies determined at Body20's discretion.
Body20 retains the right to require the franchisee to pay the minimum grand opening spend of $15,000 (or $25,000 if applicable), and Body20 will use those funds to conduct grand opening advertising and promotion for the studio on the franchisee's behalf. This ensures that even if the franchisee misses the membership target, there are still funds available for marketing.
This clause protects Body20 by ensuring that the new studio receives adequate promotion, while also giving the franchisee a chance to avoid termination by investing further in advertising. Franchisees should note that Body20 has sole discretion over how these additional marketing funds are spent.