If Body20 purchases my studio assets, what value is excluded from the purchase price?

According to Body20's 2025 Franchise Disclosure Document, when Body20 purchases a franchisee's studio assets, the purchase price will be the fair market value for use in the operation of a non-franchised competitive business, rather than as an existing Body20 studio. This valuation approach directly impacts the financial outcome for the franchisee.

The purchase price specifically excludes any value associated with the rights granted by the Franchise Agreement itself. Additionally, the price will not include any goodwill attributable to Body20's trademarks (the Marks), brand image, proprietary information, or other intellectual property rights, or the value of participating in the Body20 network of studios. This means that the established brand recognition and the benefits of being part of the Body20 franchise system are not factored into the asset purchase price.

For a prospective franchisee, this exclusion is significant. It highlights that the resale value of the studio assets to Body20 will be based on the tangible assets alone, valued as if they were for a generic business rather than a branded Body20 studio. Franchisees should consider this when projecting their potential return on investment and exit strategy, understanding that the brand equity they build under the Body20 name will not translate into a higher asset sale price to Body20.