What is the 'Interim Period' for a Body20 franchise, and how is it defined?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Interim Period.
If (i) we have not provided you with written notice that you will not be eligible to enter into a Successor Term, (ii) you and your Owners do not sign and return the Successor Agreements and comply with each of the provisions set forth in Section 2.2 (Successor Term) prior to the expiration of this Agreement, and (iii) you continue to operate the Studio and accept the benefits of this Agreement after the expiration of this Agreement, then, at our option, this Agreement may be treated either as (x) expired as of the date of the expiration of the Term, with you then operating without any authorization to do so, in violation of our rights; or (y) continued on a month-to-month basis (the "Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after the other party's receipt of the notice to terminate the Interim Period.
The Interim Period shall be considered part of the Term.
However, if you enter into a Successor Term, the Successor Term will be deemed to have begun upon expiration of the expired term, rather than the Interim Period.
If we allow for an Interim Period, all of your obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired and all obligations and restrictions imposed on you upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
However, beginning on the 30th day of the Interim Period, the monthly Royalty Fee (as defined in Section 3.2 (Royalty Fee)) shall increase to 10% of your Studio's Gross Sales (as defined in Section 3.2(b) (Gross Sales)) during each week that you fail to enter into a Successor Term until (A) you comply with the conditions necessary to acquire a Successor Term (including execution of the Successor Agreements and a general release and payment of the Successor Fee) or (B) this Agreement is terminated.
By accepting any increased Royalty Fees, we do not waive any of the rights and remedies under this Agreement, including the right to terminate this Agreement.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the 'Interim Period' refers to a specific timeframe that may occur after the initial franchise agreement term expires. This period is not automatic; it comes into effect only if Body20 has not notified the franchisee of ineligibility for a successor term, the franchisee hasn't signed successor agreements before the original term's expiration, and the franchisee continues to operate the studio.
The agreement during this Interim Period continues on a month-to-month basis until either party decides to terminate it, with a 30-day written notice required. The Interim Period is considered part of the original term, but if a Successor Term is agreed upon, it will be considered to have begun immediately after the expiration of the original term, superseding the Interim Period.
During the Interim Period, all obligations of the franchisee remain in full effect as if the original agreement hadn't expired. However, beginning on the 30th day of the Interim Period, the monthly Royalty Fee increases to 10% of the studio's Gross Sales for each week until a Successor Term is secured or the agreement is terminated. This increase in royalty fees does not waive Body20's rights or remedies under the agreement, including the right to terminate it.