Does the purchase price for the Purchased Assets of my Body20 studio include Proprietary Information?

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 Proprietary Information. The document specifies that the purchase price will be based on the fair market value for use in the operation of a non-franchised Competitive Business, not as a Body20 studio. This valuation method excludes any value associated with the rights granted by the Franchise Agreement, goodwill attributable to the Body20 Marks, the brand image, Proprietary Information, or other intellectual property rights, or participation in the network of Body20 Studios.

This means that when Body20 calculates the purchase price of your studio's assets, they will only consider the value of tangible assets like equipment, assuming they are used in a generic, non-Body20 business. The fair market value of the equipment will be determined with a useful life of no more than three years. The valuation explicitly excludes the value of Body20's unique methods, systems, and knowledge that make the franchise valuable.

For a prospective franchisee, this is an important consideration because it affects the potential return on investment if Body20 decides to repurchase the studio. The franchisee will not be compensated for the value of the Body20 brand or the systems they have implemented. This could result in a lower purchase price than expected, as the valuation focuses solely on the tangible assets' generic market value. Franchisees should be aware that the resale value to Body20 will not reflect the studio's performance or the intangible benefits of being part of the Body20 franchise system.