Is Body20 obligated to reimburse franchisees for revenue related to deals redeemed at their studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) Deals. We or our Affiliates have the right, but not the obligation to, offer deals or other discounted Session promotions, coupons, vouchers, memberships, reciprocity programs, or gift certificates on third-party websites or apps (such as Groupon, ClassPass, etc.) or other similar promotions designed to drive customers to Studios ("Deals"). If we or our Affiliates offer any Deals, we and our Affiliates have the right to collect and retain any revenue from such Deals, including any customer payments to such third parties. You must provide Sessions or other products or services to any customers redeeming any vouchers, gift certificates, Sessions, or coupons related to such Deals in accordance with the standards and other terms that we periodically specify. Except as we otherwise approve, you must treat customers who purchase Deals in the same manner as any other customer and must not limit their access to your Studio or Sessions. We may, in our sole discretion, pay to you all, or a portion of, any revenue that we receive that is directly related to Deals that are redeemed by customers at your Studio, but we are not obligated to do so and the amount of such reimbursement, if any, may be less than the standard price you charge for such Sessions, products, or services.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 or its affiliates have the right to offer deals or discounted session promotions on third-party websites or apps to drive customers to studios. These deals may include coupons, vouchers, memberships, reciprocity programs, or gift certificates. Body20 retains the right to collect and keep any revenue generated from these deals, including customer payments made to third parties.
However, Body20 franchisees are required to provide sessions or other products/services to customers who redeem vouchers, gift certificates, sessions, or coupons related to these deals, following the standards and terms specified by Body20. Franchisees must treat these customers the same as any other customer, without limiting their access to the studio or sessions, unless otherwise approved by Body20.
While Body20 has the discretion to reimburse franchisees for all or a portion of the revenue received from deals redeemed at their studio, they are not obligated to do so. If a reimbursement is provided, the amount may be less than the standard price the franchisee charges for such sessions, products, or services. This means that franchisees may not receive full compensation for deals redeemed at their studios, and the decision to reimburse and the amount of reimbursement are at Body20's sole discretion.