How many successor terms can a Body20 franchisee obtain?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Term and Successor Terms are referred collectively in this Agreement as the "Term." You may only exercise this right to obtain a Successor Term if:
(a) You give us written notice of your desire to obtain a successor License at least six, but no more than 12, months before the expiration of the then-current Initial Term or Successor Term;
(b) You and your Owners (as applicable) executing and returning to us the successor Franchise Agreement, Owner's Guarantee, and ancillary agreements we provide to you to govern your ownership and operation of the Studio during the Successor Term (the "Successor Agreements"), which you acknowledge may contain terms materially different than those contained in this Agreement, including (i) higher rates of Royalty Fees and Brand Fund Fees (as both are herein defined) and other fees and charges and (ii) a modified Territory.
The Successor Agreements will be modified as we deem necessary and appropriate to reflect changes we deem appropriate for such Successor Term, including (a) that the Studio is a developed and operating business, (b) that you are paying a Successor Fee (as defined in Section 3.6 (Successor Fee)) in lieu of an initial franchise fee, (c) any changes to the description of the Territory (which may make it smaller or larger), as we deem appropriate to reflect changes in demographics, competitive positioning, and our territorial policies since the Studio was originally developed, and (d) that you will have no further renewal or extension rights;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee has the right to obtain a successor term, but this right can only be exercised if certain conditions are met. These conditions include providing written notice within a specific timeframe, executing successor agreements, refurbishing the studio to meet current brand standards, and releasing claims against Body20. The successor agreements may contain terms that are significantly different from the original agreement, including higher fees and a modified territory.
Specifically, the FDD states that the successor agreements will be modified as Body20 deems necessary and appropriate, considering factors such as the studio being an established business and any changes to demographics or competitive positioning. These modifications can also include changes to the territory, potentially making it smaller or larger.
However, the document explicitly states that franchisees will have no further renewal or extension rights after the successor term. This means that while a franchisee can obtain one successor term if they meet all the requirements, they will not be able to renew or extend the franchise agreement beyond that successor term. This is a crucial point for prospective franchisees to consider, as it limits the long-term duration of their franchise ownership with Body20.