What is the meaning of 'you' or 'Franchisee' in the Body20 Disclosure Document?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
l.** To simplify the language in this Disclosure Document, "we" or "us" means Body20 Franchisor LLC, the franchisor. "You" or "Franchisee" means the person or entity who buys the franchise, including all equity owners of a corporation, general partnership, limited partnership, limited liability, or any other type of entity (an "Entity"). If you are an Entity, each individual or Entity that has a legal or beneficial interest in you will be referred to as an "Owner." Your Owners and their spouses (as applicable) must sign the Payment and Performance Guarantee attached to the Franchise Agreement, the current form of which is attached to this Disclosure Document as Exhibit A (the "Franchise Agreement"), which means that all of the provisions of the Franchise Agreement will also apply to your Owners and their spouses (as applicable).
We are a limited liability company formed in Delaware on April 1, 2025. We do business under the "BODY20® " name (the "Brand"). Our principal business address is 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660. If we have an agent for service of process in your state, we disclose that agent in Exhibit D.
We became the franchisor of BODY20® studios ("Studios") on April 4, 2025. While we have never owned a Studio, as of the date of this Disclosure Document, we operate one Studio under the terms of a management agreement with the applicable franchisee and have agreed to purchase that Studio in August 2025.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the terms 'you' or 'Franchisee' refer to the individual or entity that purchases the franchise. This includes all equity owners if the franchisee is a corporation, general partnership, limited partnership, limited liability company, or any other type of entity.
If the franchisee is an entity, each individual or entity with a legal or beneficial interest is considered an 'Owner'. These Owners, along with their spouses, are required to sign a Payment and Performance Guarantee attached to the Franchise Agreement. This means that all provisions of the Franchise Agreement apply not only to the franchisee but also to their Owners and their spouses.
Furthermore, Body20 requires the franchisee to designate an 'Operating Principal' who has at least a 10% ownership interest in the entity. This Operating Principal must have the authority to make all business decisions related to the Body20 studio and must be able to legally bind the franchisee in all dealings with Body20. Additionally, the franchisee must appoint a 'Designated Manager' to handle the day-to-day operations of the studio, and the Operating Principal can also serve as the Designated Manager if they meet the necessary qualifications.