If Body20 performs a franchisee's obligation after a default, is the franchisee required to reimburse Body20?

According to Body20's 2025 Franchise Disclosure Document, if a franchisee defaults on their obligations under the Franchise Agreement, Body20 has the option to step in and perform those obligations on the franchisee's behalf. Should Body20 choose to do so, the franchisee is obligated to reimburse Body20 for all costs and expenses reasonably incurred in performing those obligations or duties. This reimbursement is due upon demand from Body20.

This clause in the Franchise Agreement means that franchisees could face unexpected costs if they fail to meet their contractual obligations. For example, if a Body20 franchisee fails to maintain the studio according to the brand's standards and Body20 steps in to rectify the situation, the franchisee will be responsible for covering all associated expenses. These expenses could include the cost of repairs, labor, materials, and any other costs Body20 incurs to correct the default.

It is important for prospective Body20 franchisees to understand the scope of their obligations under the Franchise Agreement and to have a plan in place to meet those obligations. Failure to do so could result in Body20 stepping in to perform the obligations and the franchisee incurring unexpected and potentially significant costs. Franchisees should maintain open communication with Body20 to address any potential issues proactively and avoid defaults that could lead to these types of interventions and associated costs.