Is Body20's prior approval required to change the Operating Principal and Designated Manager?

According to Body20's 2025 Franchise Disclosure Document, franchisees must obtain prior approval from Body20 to change their Operating Principal and Designated Manager. The Operating Principal must have at least a 10% ownership interest in the franchisee's entity, have authority over all business decisions related to the studio, and have the power to bind the franchisee in all dealings with Body20. The Designated Manager is responsible for managing the day-to-day business of the studio and may also be the Operating Principal, but is not required to have an ownership interest. Franchisees must provide Body20 with written notice of their Operating Principal and Designated Manager at least 60 days prior to opening their studio.

This requirement ensures that Body20 maintains control over the management and operation of its franchised studios. By requiring prior approval for changes in these key positions, Body20 can ensure that individuals in these roles meet their standards and have the necessary qualifications and experience to operate a Body20 studio effectively. This also allows Body20 to maintain consistent communication and a working relationship with the individuals who are responsible for the studio's performance and compliance with the franchise agreement.

For a prospective Body20 franchisee, this means that any changes to the Operating Principal or Designated Manager must be carefully planned and executed with Body20's involvement. It is important to identify suitable candidates for these positions and obtain Body20's approval before making any changes. Failure to do so could result in a violation of the franchise agreement and potential penalties. Franchisees should factor in the time required to obtain Body20's approval when planning for changes in these roles to avoid any disruption to the studio's operations.