Can a prospective Body20 franchisee request written substantiation for the financial performance representation?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 64–69)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, prospective franchisees can request written substantiation for the financial performance representation. This means that Body20 is obligated to provide documentation supporting the financial figures presented in Item 19 of the FDD upon a reasonable request from a potential franchisee.
This substantiation is crucial for a prospective franchisee to verify the accuracy and reliability of the financial performance data. It allows them to conduct a more informed assessment of the potential financial risks and rewards associated with investing in a Body20 franchise. The FDD also states that the financial figures in the tables were calculated using financial reports submitted to the Predecessor by franchisees and Predecessor's affiliates and that no certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.
It is important to note that while Body20 will provide written substantiation, the FDD also encourages prospective franchisees to consult with their own accounting, business, and legal advisors to assist in preparing budgets and projections. Additionally, the FDD advises potential franchisees to contact existing franchisees to discuss their experiences with the Body20 system. By combining the franchisor-provided data with independent expert advice and feedback from current franchisees, prospective franchisees can make a well-rounded decision.