Does Body20 require franchisees to purchase certain ongoing equipment purchases from Body20 or its affiliates?

According to Body20's 2025 Franchise Disclosure Document, franchisees are required to purchase certain ongoing equipment from Body20 or its affiliates. In addition to ongoing equipment, franchisees must also purchase the Initial FF&E Package, the Presale Kit, the Initial Retail Inventory Kit, and replacement inventory and sales materials and accessories from Body20 or its affiliates. Body20 retains the right to designate themselves or their affiliates as the approved or required suppliers of other goods or services in the future.

Body20 also requires franchisees to purchase certain other equipment and supplies, interior graphics and exterior signage, the Technology System, music licenses, and payment processing services from suppliers or service providers that Body20 has designated or approved. When franchisees develop and construct their studio, Body20 has the right to require franchisees to obtain Body20's prior written approval of any project managers, architects, engineers, or designers that they would like to use before they engage them.

Body20 estimates that the cost to purchase and lease all equipment, inventory, and other items and services that franchisees are required to obtain from Body20 or its affiliates, from designated suppliers, or in accordance with Body20's specifications ranges from 75% to 90% of the total cost to purchase and lease equipment, inventory, and other items necessary to establish a Studio and 30% to 45% of the total cost to purchase and lease equipment, inventory, and other items to operate a Studio. This indicates a significant portion of a franchisee's initial and ongoing investment is tied to purchases controlled or influenced by Body20.

If a franchisee wants to use products, supplies, Operating Assets, or services that Body20 has not approved or to purchase or lease from a supplier or service provider that Body20 has not approved, the franchisee must submit a written request for approval and provide Body20 with any information that Body20 requests. Body20 has the right to inspect the proposed supplier's facilities and test samples of the proposed products and to evaluate the proposed service provider and the proposed service offerings. The franchisee will pay Body20 a charge that is equal to the greater of $1,000 or Body20's and its affiliates' actual costs and expenses related to the inspection and/or testing the proposed product or evaluating the proposed service or service provider, including personnel and travel costs, whether or not the item, service, supplier, or service provider is approved.