How can a month-to-month extension of a Body20 franchise term be terminated?
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. |
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, if a franchisee continues to operate their Body20 studio after the initial 10-year franchise term expires, the agreement may be treated as extended on a month-to-month basis. This extension can be terminated by either Body20 or the franchisee.
To end the month-to-month extension, either party must deliver a notice to the other. The termination then becomes effective 30 days after the other party receives this notice. This means a Body20 franchisee would have 30 days to wind down operations after receiving notice from Body20, and conversely, Body20 would have 30 days to prepare for a franchisee's departure after receiving notice from them.
This provision provides flexibility for both Body20 and its franchisees. It allows for continued operation without a long-term commitment while ensuring a reasonable transition period when either party decides to end the relationship. Franchisees should be aware of this termination clause and factor it into their long-term business planning.