Can Body20 require franchisees to lease specific furniture for their studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Authorized Products and Services. We have the right to require that all furniture, fixtures, signs, and equipment (collectively, the "Operating Assets") and products, supplies, and services that you purchase for resale or purchase or lease for use in your Studio: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from suppliers or service providers that we have expressly approved;
and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates).
You must offer to customers only the products, services, and Sessions we approve in writing. In addition, you must offer the specific products, services, and Sessions that we require in the Manuals or otherwise in writing. We may change these specifications periodically, and we may designate specific products or services as optional or mandatory. You must offer all products or services that we designate as mandatory.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–37)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to require franchisees to purchase or lease furniture that meets their specifications. Body20 can mandate that the furniture be a specific brand, kind, or model and be purchased or leased only from approved suppliers or a single designated source, which may include Body20 or its affiliates. These items fall under the umbrella of "Operating Assets," which also includes fixtures, signs, and equipment.
This means that as a Body20 franchisee, you may have limited or no flexibility in choosing the furniture for your studio. You must adhere to Body20's standards and procure these items from their specified sources. This requirement ensures uniformity across all Body20 studios and allows Body20 to maintain brand consistency and quality control.
The FDD also states that the cost to purchase and lease all equipment, inventory, and other items and services that Body20 requires you to obtain from them, their affiliates, designated suppliers, or according to their specifications ranges from 75% to 90% of the total cost to establish a Studio and 30% to 45% of the total cost to operate a Studio. This indicates a significant portion of your initial and ongoing costs will be dictated by Body20's sourcing requirements.
Prospective franchisees should carefully consider these restrictions and their potential impact on their budget and operational flexibility. It is important to inquire about the specific furniture requirements, approved suppliers, and associated costs during the due diligence process to fully understand the financial implications of these mandates.