How can the 'Interim Period' for a Body20 franchise be terminated?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchisee Parties are in full compliance with all Related Agreements, including (i) operating all Studios in compliance with all System Standards (including all minimum quality, service, cleanliness, and/or health and safety standards) and (ii) being current (i.e., not delinquent) with respect to all fees or payments due; and
- (i) You pay to us the Successor Fee (as defined in Section 3.6 (Successor Fee)).
- 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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the 'Interim Period' for a Body20 franchise occurs if the franchisee continues to operate the studio after the original agreement expires, without signing a successor agreement, and Body20 allows it. During this time, the agreement continues on a month-to-month basis.
The 'Interim Period' can be terminated by either Body20 or the franchisee providing written notice to the other party indicating their intent to end this period. The termination becomes effective 30 days after the other party receives the notice.
It's important to note that during the 'Interim Period', all obligations of the franchisee remain in full force. However, beginning on the 30th day of the Interim Period, the monthly Royalty Fee increases to 10% of the Studio's 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. This increased royalty fee does not waive Body20's rights or remedies under the agreement, including the right to terminate the agreement.