What is the Reporting Period covered in the Body20 financial performance representation?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
This Item 19 presents information about the financial performance during the 15-month period starting on January 1, 2024 and ending on March 31, 2025 (the "Reporting Period") of franchised Studios that were open throughout the entire Reporting Period ("Covered Studios"). Table 1 presents annual Gross Sales data for the Covered Studios for the 2024 calendar year.
Table 4 presents data for certain franchised Studios that conducted pre-opening sales during the Reported Period.
As of March 31, 2025, there were 67 Studios in operation, including one Studio operated by Predecessor's owners (which we have categorized as an "Affiliate-Owned Studio.") In this Item 19, we have included data for 35 franchised Studios that were open throughout the Reporting Period. We have not included in this Item 19 data for (i) the one Affiliate-Owned Studio, (ii) 30 franchised Studios that opened during the Reporting Period and, therefore, were not open throughout the entire Reporting Period, (iii) one franchised Studio that did not report complete data due to a transfer of ownership in the Reporting Period, and (iv) one franchised Studio that experienced atypical sales due to the relocation of the Studio during the Reporting Period. Nine Studios permanently closed during the Reporting Period, including three that were not open at least 12 months prior to closing (one of which opened and closed within the Reporting Period).
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 64–69)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the financial performance representation covers a 15-month period. This "Reporting Period" starts on January 1, 2024, and ends on March 31, 2025. The financial performance data presented in Item 19 of the FDD relates to Body20 franchised studios that were open and operating throughout this entire 15-month timeframe. These studios are referred to as "Covered Studios".
It is important to note that not all Body20 studios are included in the financial performance data. As of March 31, 2025, there were 67 studios in operation, but the Item 19 data only includes 35 franchised studios that were open for the entire Reporting Period. The FDD excludes data from the one affiliate-owned studio, 30 franchised studios that opened during the Reporting Period, one franchised studio that did not report complete data due to a transfer of ownership, and one franchised studio that experienced atypical sales due to relocation.
Furthermore, the Body20 FDD mentions that nine studios permanently closed during the Reporting Period, including three that were not open for at least 12 months prior to closing. These closures are also excluded from the financial performance data. This means that the financial performance data presented is based on a subset of the Body20 franchise system, specifically those studios with a consistent operating history during the specified 15-month period. This approach aims to provide a more reliable representation of potential financial performance for prospective franchisees.