Does Body20 require franchisees to acknowledge that their success depends on competition from other businesses?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Your Acknowledgements.
You acknowledge and agree that: (i) you have conducted an independent investigation of the business contemplated by this Agreement, recognize that it involves business risks, and recognize that making a success of a venture is largely dependent on your own business abilities; (ii) no assurance or warranty, express or implied, has been given to you by us or any of our affiliates as to the potential success of any business contemplated by this Agreement or the profits that may be achieved; (iii) there are no promises, commitments, "side deals," options, rights of first refusal, or other rights or obligations in connection with this Agreement except as expressly provided for in this Agreement; and (iv) the terms and covenants in this Agreement are reasonable and necessary for us to maintain our high standards of quality and service, as well as the uniformity of those standards at each Studio, and to protect and preserve the goodwill of the Marks.
- (c) No Reliance on Contrary Representations.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, franchisees acknowledge that the success of their Body20 studio depends largely on their own business abilities. Specifically, franchisees must acknowledge that they have conducted an independent investigation of the business, recognize that it involves business risks, and understand that their success is largely dependent on their own capabilities. This acknowledgement is part of a broader set of agreements where franchisees confirm they are not relying on any guarantees from Body20 regarding potential success or profits, except as expressly stated in the Franchise Agreement and the FDD.
This acknowledgement is required of all Body20 franchisees and studios, except those subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. For franchisees in those listed states, the FDD states that no acknowledgement signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by Body20.
This acknowledgement underscores the importance of due diligence and realistic expectations when investing in a Body20 franchise. While Body20 provides a system and brand, the franchisee's individual effort and business acumen are critical for achieving profitability. This is a common practice in franchising, where the franchisee's active management and local market knowledge significantly impact the business's performance.