What is the length of each additional successor term for a Body20 franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Sections 2.1 and 2.3 | Begins on the effective date of your Franchise Agreement and continues for 10 years from the date you open your Studio for business. If you continue operating after expiration, we may treat the term as extended on a month-to month basis until either we or you deliver notice ending that extension, in which case that interim period will terminate 30 days after the other party's receipt of the notice to terminate the interim period. |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the conditions, you may obtain two additional consecutive successor terms of five years each. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You have notified us of your intent to renew at least six months in advance but no more than 12 months in advance; you and your Owners (as applicable) have signed and returned to us the successor franchise agreement, owner's guaranty, and ancillary agreements (modified as we consider necessary to reflect changes that we consider appropriate for the successor term), which may have materially different terms and conditions than your original Franchise Agreement; you have refurbished or renovated the Studio to our then-current specifications; you and your Owners have executed a general release in favor of us and our affiliates; you have completed, and have had your Operating Principal and Designated Manager complete, our then-current training requirements; you have secured from your landlord the right to continue operating at the Site for the remainder of the successor term; you, your Owners, and your affiliates (the ("Franchisee Parties") have fully complied with the Franchise Agreement and all other agreements between any Franchisee Party and us, our affiliates, and/or our approved vendors related to the Studio or any other Studios (each, a "Related Agreement"); at the time you provide notice of your intent to enter into a successor term and at the expiration of the then-current term of the Franchise Agreement, the Franchisee Parties are in full compliance with all Related Agreements; and you have paid us the Successor Fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee who meets certain conditions may be able to renew their franchise agreement for two additional terms. Specifically, Body20 grants the option to obtain two additional consecutive successor terms, each lasting for five years. This means that after the initial 10-year term, a franchisee could potentially operate their Body20 studio for another 10 years through these renewals.
To be eligible for these renewal terms, the franchisee must meet several requirements. These include notifying Body20 of their intent to renew within a specific timeframe (6 to 12 months before the current term expires), signing the successor franchise agreement (which may have different terms than the original), refurbishing the studio to Body20's current standards, and executing a general release in favor of Body20. The franchisee and their owners must also be in full compliance with all agreements with Body20 and its affiliates, and the franchisee must secure the right to continue operating at the current location. Finally, the franchisee must pay Body20 a successor fee to finalize the renewal.
It is important for prospective Body20 franchisees to understand that the terms and conditions of the successor franchise agreement may differ significantly from the original agreement. This could include changes to fees, royalties, operating procedures, or other key aspects of the franchise relationship. Franchisees should carefully review the successor agreement and seek legal counsel to fully understand their rights and obligations before committing to a renewal term. Failing to meet any of the renewal requirements could result in the franchisee losing the right to continue operating their Body20 studio.