What is the purpose of the Rider to the Franchise Agreement for Body20 franchisees in Maryland?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
RSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
- 5. ILLINOIS FRANCHISE DISCLOSURE ACT. The following is added as Section 16.10 of the Franchise Agreement:
- 16.10 Illinois Franchise Disclosure Act. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act or any other law of Illinois is void. However, that Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any provision of the Act,
nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.
IN WITNESS WHEREOF, each of the undersigned has executed this Agreement under seal as of the Effective Date.
BODY20 FRANCHISOR LLC (IF ENTITY): [Name] Title: Date: (IF INDIVIDUALS): [Signature] [Print Name] [Signature] [Print Name] Date:
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MARYLAND
THIS RIDER (this "Rider") is made and entered into by and between BODY20 Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
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- BACKGROUND. We and you are parties to that certain Franchise Agreement dated __________________________, 20___ (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are domiciled in Maryland, and/or (b) the Studio that you will operate under the Franchise Agreement will be located in Maryland.
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- RELEASES. The following is added to the end of Sections 2.2(d) ("Successor Term"), 13.4(d) ("Control Transfer"), 13.5 ("Non-Control Transfers"), 13.6 ("Transfer To an Entity"), and 15.7(d) ("Closing") of the Franchise Agreement:
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
- GOVERNING LAW.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Rider to the Franchise Agreement for use in Maryland is designed to ensure compliance with the Maryland Franchise Registration and Disclosure Law. This rider is included if a franchisee is domiciled in Maryland or if the Body20 studio will be located in Maryland.
The rider modifies specific sections of the standard Franchise Agreement to protect the franchisee's rights under Maryland law. Specifically, it states that the general release required for renewal, sale, or transfer of the franchise does not apply to liabilities arising from the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their legal rights under Maryland franchise law even when signing a general release.
Additionally, the rider stipulates that Maryland law will govern claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any conflicting provisions in the main agreement. It also affirms the franchisee's right to bring lawsuits in Maryland for claims under that law, subject to arbitration obligations. Finally, the rider ensures that any limitation of claims does not reduce the three-year statute of limitations provided by Maryland law for such claims. These provisions collectively aim to provide Body20 franchisees in Maryland with the full protection and benefits of their state's franchise laws.