If the prospective franchisee contacted existing Body20 franchisees, does the Body20 FDD receipt require a description of the information shared?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| b. | The revenue or profits that a BODY20® franchise will generate? |
|---|---|
| Yes | |
| No | |
| c. | Any other financial performance information about BODY20® |
| franchises? | |
| Yes | |
| No | |
| If your answer to any part of Question 10 is "yes," please describe the statement or | |
| representation. | |
| Please include when, where, and by whom the statement or | |
| representation was made. Please provide full details in the following space. | |
| (Attach | |
| additional pages, if necessary.) | |
| Have you contacted any of our existing franchisees about their financial performance? | |
| Yes | |
| No | |
| If your answer to Question 12 is "yes," please describe the information that they shared | |
| with you in the following space. (You do not need to identify the franchisees with whom | |
| you spoke.) |
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Item 23 receipt includes a section where prospective franchisees must disclose whether they have contacted existing Body20 franchisees regarding their financial performance. If the prospective franchisee answers "yes" to contacting existing franchisees, they must describe the information that was shared with them in the space provided. The receipt states that the prospective franchisee does not need to identify the franchisees with whom they spoke.
This requirement ensures that Body20 has a record of any direct communication between potential and current franchisees, particularly concerning financial performance. This transparency can help Body20 monitor the types of information being disseminated by its franchisees and address any potential misrepresentations or unrealistic expectations. It also allows Body20 to assess whether prospective franchisees are receiving consistent and accurate information about the franchise opportunity.
For a prospective franchisee, this means being prepared to document any conversations with existing Body20 franchisees. It is important to keep detailed notes of these discussions, focusing on the specific financial information shared. While the franchisee's identity is not required, accurately summarizing the information is crucial. This disclosure helps protect both the franchisee and Body20 by ensuring transparency and accountability in the information-gathering process.
This practice is fairly common in franchising, as franchisors want to manage the information flow and ensure consistent messaging about the brand and opportunity. By requiring this disclosure, Body20 aims to maintain control over the narrative and mitigate the risk of misleading or inaccurate information influencing a prospective franchisee's decision.