Does the purchase price for the Purchased Assets of my Body20 studio include goodwill attributable to the Marks?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price for the Purchased Assets will be their fair market value for use in the operation of a non-franchised Competitive Business (and not a Studio).
However, the purchase price will not include any value for any rights granted by this Agreement, goodwill attributable to the Marks, our brand image, any Proprietary Information or our other intellectual property rights, or participation in the network of Studios.
For purposes of determining the fair market value of all equipment (including the exercise equipment and Technology System) used in operating the Studio, the equipment's useful life shall be determined to be no more than three years.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the purchase price for the Purchased Assets of a Body20 studio will not include any value for goodwill attributable to the Marks. The purchase price will be the fair market value for use in the operation of a non-franchised Competitive Business, not a Body20 Studio. The purchase price also will not include any value for any rights granted by the Franchise Agreement, Body20's brand image, any Proprietary Information, or Body20's other intellectual property rights, or participation in the network of Body20 Studios.
This means that when Body20 determines the purchase price of your studio's assets, they will only consider the value of the physical assets, such as equipment, and not the value of the Body20 brand or its reputation. This could result in a lower purchase price than if the goodwill associated with the Body20 brand were included.
For determining the fair market value of all equipment, including the exercise equipment and Technology System, the equipment's useful life will be determined to be no more than three years. This depreciation timeline could impact the overall valuation of the studio's assets during a purchase.