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What obligations does a Body20 franchisee have regarding approved suppliers in Item 8, and how are those obligations detailed in Item 9?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

s as set forth in the Manuals or otherwise in writing from time to time. If we set a suggested retail price for a good or service, we may prohibit you from advertising any other prices for such goods or services. Except as otherwise provided in this Section and in Section 6.10(a) (Promotional Programs and Reciprocity), you are solely responsible for determining the prices that you will charge Members and customers. You must provide us with your current price list upon our request.

6.8 Products, Supplies, Operating Assets, and Services.

  • (a) Purchases. We have the right to require that products, supplies, Operating Assets, and services that you purchase for resale or purchase or lease for use in your Studio: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from suppliers or service providers that we have expressly approved; and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our Affiliates or a buying cooperative organized by us or our Affiliates). To the extent that we establish specifications, require approval of suppliers or service providers, or designate specific suppliers or service providers for particular items or services, we will publish our requirements in the Manuals.

  • (b) Products and Services You May Offer. You may offer in the Studio to customers only the products, services, and Sessions that we have approved in writing. In addition, you must offer the specific products, services, and Sessions that we require in the Manuals or otherwise in writing. We may change these specifications periodically, and we may designate specific products or services as optional or mandatory. You must offer all products, services, or Sessions that we designate as mandatory. You may sell products and services only in the varieties, forms, and packages that we have approved in accordance with our System Standards. You must maintain a sufficient supply of required products to meet the inventory standards we prescribe in the Manuals (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).

  • (c) Revenue from Purchases. You acknowledge and agree that we and/or our Affiliates may derive revenue based on your purchases and leases, including from charging you for products and services we or our Affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by suppliers and/or distributors that we designate or approve for some or all of our franchisees. We and our Affiliates may use all amounts received from suppliers and/or distributors, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our Affiliates deem appropriate. If you derive any revenue based on payments or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement and such revenue shall be included as part of your Gross Sales.

  • (d) Approval Process. If you would like to offer products, services, or Sessions or use any supplies, Operating Assets, or services that we have not approved or to purchase or lease from a supplier or service provider that we have not approved, you must submit a written request for approval and provide us with any information that we request. We have the right to inspect the proposed supplier's facilities and test samples of the proposed products and to evaluate the proposed service provider and the proposed service offerings. We may require the proposed supplier or service provider to visit our headquarters, currently in Chicago, Illinois, to evaluate the proposed supplier or service provider in person.

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, franchisees are obligated to adhere to specific requirements regarding the purchase of products, supplies, operating assets, and services. Body20 has the right to mandate that franchisees purchase or lease items that meet established specifications, are of a specific brand, kind, or model, and are sourced exclusively from approved suppliers or a designated single source, which may include Body20 or its affiliates. These requirements are detailed in the manuals provided to franchisees.

Body20 also reserves the right to inspect and re-evaluate approved suppliers and service providers, and can revoke approval if they fail to meet current criteria. If a previously approved product or service is disapproved, franchisees must immediately discontinue offering the service and can only sell the remaining inventory of the product for up to 30 days, or a shorter period if Body20 deems continued sale detrimental to its reputation. After this period, franchisees must dispose of the remaining inventory as directed by Body20.

Item 8 outlines that Body20 and its affiliates may receive revenue from franchisee purchases through various means, including direct charges for products and services, promotional allowances, and volume discounts from suppliers. The FDD estimates that 75% to 90% of the total cost to establish a Body20 studio and 30% to 45% of the total cost to operate a studio will be subject to these specifications. Item 9 references the franchisee's obligations under the Franchise Agreement, but does not specifically detail obligations related to suppliers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.