Can Body20 prohibit a franchisee from advertising prices other than the suggested retail price?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5. Pricing. If we determine that we may lawfully require you to charge certain prices for goods or services, certain minimum prices for goods or services, or certain maximum prices for goods or services, you must adhere to our pricing policies 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 provided above and in Section 6.10(a) of the Franchise Agreement (Promotional Programs and Reciprocity), you are solely responsible for determining the prices that you charge customers. You must provide us with your current price list upon our request. (Franchise Agreement - Section 6.7)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 may restrict a franchisee's ability to advertise prices other than the suggested retail price. If Body20 sets a suggested retail price for a good or service, they may prohibit franchisees from advertising any other prices for those goods or services. However, franchisees are generally responsible for determining the prices they charge customers.
This policy enables Body20 to maintain consistent pricing and branding across all franchise locations. For a potential franchisee, this means that while they have some control over setting prices, they may be limited in how they advertise those prices if Body20 establishes a suggested retail price. Franchisees must provide Body20 with their current price list upon request, ensuring transparency and adherence to the franchisor's pricing policies.
This restriction on advertising alternative prices is contingent on Body20 determining that they can lawfully require franchisees to adhere to certain pricing. The FDD also mentions that franchisees must adhere to Body20's pricing policies as set forth in the manuals or in writing. This implies that Body20 will communicate these policies clearly to franchisees.
It is important for prospective Body20 franchisees to understand the extent to which Body20 can control pricing and advertising, as this can impact their ability to attract customers and manage their profit margins. Franchisees should seek clarification on Body20's pricing policies and how they are enforced to ensure they are comfortable with the level of control Body20 exerts over pricing and advertising strategies.