What is the meaning of 'Owner' 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 term 'Owner' refers to individuals or entities with a legal or beneficial interest in a franchisee entity. If the franchisee is not an individual but rather a corporation, general partnership, limited partnership, limited liability company, or any other type of entity, then each individual or entity that holds a legal or beneficial interest in the franchisee is considered an 'Owner'.
This definition is significant because Body20 requires all Owners and their spouses to sign a Payment and Performance Guarantee attached to the Franchise Agreement. This means that the provisions of the Franchise Agreement apply not only to the franchisee entity but also to the Owners and their spouses. This ensures that Body20 has recourse to the personal assets of the Owners if the franchisee entity fails to meet its obligations under the Franchise Agreement.
Furthermore, Body20 requires the franchisee to designate an 'Operating Principal' who has at least a 10% ownership interest in the franchisee entity. This Operating Principal must have the authority to make all business decisions related to the Body20 studio and must have the power to bind the franchisee in all dealings with Body20. The franchisee must also appoint a 'Designated Manager' to manage the day-to-day business of the studio, and the Operating Principal may serve as the Designated Manager if they have sufficient experience and qualifications.