Regarding the Body20 franchise agreement, what is the franchisee representing about the truthfulness of the information provided to the franchisor?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Reliance on Contrary Representations.
You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement.
You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (d) Financial Performance Representations.
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents,
employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Studio or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates. Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, as part of the franchise agreement, the franchisee acknowledges certain representations regarding the information they've received and relied upon. Specifically, the franchisee confirms they have no knowledge of any representations about the franchise opportunity made by Body20, its affiliates, or their representatives that contradict the statements in the FDD or the franchise agreement itself. This means the franchisee is agreeing that no one from Body20 has told them anything that conflicts with the official documents.
Furthermore, the franchisee represents that they are not relying on any representations or warranties, whether expressed or implied, from Body20 or its representatives, except for those explicitly stated in the franchise agreement and the FDD. This is a crucial point, as it limits Body20's liability to only what is written in those official documents. Any verbal promises or assurances not included in the agreement or FDD are essentially disclaimed, and the franchisee cannot later claim they relied on them.
However, there is an exception to this rule for franchisees and studios subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. In these states, no statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives. This means that in these specific states, franchisees retain certain legal rights and protections, even if they've signed agreements to the contrary. This ensures that Body20 franchisees in those states cannot be forced to waive their rights to pursue claims of fraud or misrepresentation.