What is included in the definition of 'Operating Assets' for a Body20 studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must keep the exterior (including parking lot) and interior of your Studio and all fixtures, furnishings, signs, and equipment (the "Operating Assets") in the highest degree of cleanliness, orderliness, sanitation, and repair in accordance with the Manuals. You must place or display at the Site (interior and exterior) only those signs, emblems, designs, artwork, lettering, logos and display and advertising materials that we periodically require or authorize. You may not make any material alteration, addition, replacement, or improvement to your Studio, including its Operating Assets, without our prior written consent.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Operating Assets are defined as the fixtures, furnishings, signs, and equipment within the Body20 studio.
This definition is important for franchisees because they are responsible for maintaining these assets in a clean, orderly, and well-repaired condition, as outlined in the manuals. Furthermore, franchisees need Body20's written consent before making any material alterations, additions, replacements, or improvements to these Operating Assets.
The franchisor also has specific rights regarding the Operating Assets. Body20 can mandate that franchisees purchase or lease these assets according to their specifications, including brand, kind, or model, and only from approved suppliers. This control ensures brand consistency and quality across all franchise locations, but it may limit the franchisee's choice of vendors and potentially increase costs.
When the franchise agreement terminates, Body20 has the option to purchase the Operating Assets. The purchase price will be based on the fair market value for use in a non-franchised competitive business, with the equipment's useful life capped at three years for valuation purposes. This valuation method excludes any value associated with the Body20 brand or proprietary information, which could impact the final purchase price a franchisee receives.