Must the Body20 Operating Principal have authority over all business decisions related to the studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate an Owner with at least a 10% ownership interest in your Entity as the "Operating Principal." The Operating Principal must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a manager to manage the day-to-day business of your Studio (the "Designated Manager"). Your Operating Principal may serve as your Designated Manager, unless we believe that he or she does not have sufficient experience or qualifications.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 55)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if the franchisee is an entity, the Operating Principal must have authority over all business decisions related to the studio. The Operating Principal must also have the power to bind the franchisee in all dealings with Body20. This individual must have at least a 10% ownership interest in the franchisee entity.
In addition to the Operating Principal, Body20 requires the franchisee to appoint a Designated Manager to manage the day-to-day business operations of the studio. The Operating Principal can also serve as the Designated Manager, unless Body20 believes that the Operating Principal does not have sufficient experience or qualifications. The Designated Manager is not required to have an ownership interest in the franchisee entity.
Body20 requires written notice of the Operating Principal and Designated Manager at least 60 days before opening the studio. The franchisee cannot change the Operating Principal and Designated Manager without Body20's prior written approval. This ensures that Body20 maintains control over who is managing and making decisions for each franchise location.