Can Body20 require franchisees to purchase other goods or services from approved or designated suppliers or service providers in the future?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently, we require you to purchase from us or our affiliates (i) the Initial FF&E Package, (ii) the Presale Kit, (iii) the Initial Retail Inventory Kit, (iv) certain ongoing equipment purchases, and (v) replacement inventory and sales materials and accessories. We reserve the right to designate us or our affiliates as approved or required suppliers of other goods or services in the future.
Currently, we require you to purchase from suppliers or service providers that we have designated or approved (i) certain other equipment and supplies, (ii) interior graphics and exterior signage, (iii) the Technology System, (iv) music licenses, and (v) payment processing services. We may require you to purchase other goods or services from approved or designated supplies or services providers in the future.
We reserve the right to re-inspect the facilities and products of any approved supplier and to reevaluate the services provided by any service provider at and to revoke approval of the item,
service, supplier, or service provider if any fail to meet any of our then-current criteria. If we revoke approval of a previously-approved product that you have been selling to customers or service that you have been offering to customers, you must immediately discontinue offering the service and may continue to sell the product only from your existing inventory for up to 30 days following our disapproval. We have the right to shorten this period if, in our opinion, the continued sale of the product would prove detrimental to our reputation. After the 30-day period, or such shorter period that we may designate, you must dispose of your remaining formerly-approved inventory as we direct.
To the extent that we establish specifications, require approval of suppliers or service providers, or designate specific suppliers or service providers for particular items or services, we will publish our requirements in the Manuals. We may, at any time, in our discretion, change, delete, or add to any of our specifications or quality standards. Such modifications, however, will generally be uniform for all franchisees. We will notify you of any changes to our Manuals, specifications, or standards in writing, which we may transmit to you electronically.
We estimate that the cost to purchase and lease all equipment, inventory and other items and services that we require you to obtain from us or our affiliates, from designated suppliers, or in accordance with our 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.
If you would like to offer products or use any supplies, Operating Assets, or services that we have not approved or to purchase or lease from a supplier or service provider that we have not approved, you must submit a written request for approval and provide us with any information that we request. We have 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. We may require the proposed supplier or service provider to visit our headquarters, currently, in Newport Beach, California, to evaluate the proposed supplier or service provider in person. You will pay us a charge that is equal to the greater of $1,000 or our and our 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. We have the right to grant, deny, or revoke approval of products, services, suppliers, or service providers based solely on our judgment. We will notify you in writing of our decision as soon as practicable following our evaluation. If you do not receive our approval within 30 days after submitting all of the information that we request, our failure to respond will be considered a disapproval of the request.
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 retains the right to mandate that franchisees purchase additional goods or services from approved or designated suppliers or service providers in the future. Currently, franchisees are required to purchase specific items such as the Initial FF&E Package, Presale Kit, Initial Retail Inventory Kit, certain ongoing equipment, and replacement inventory from Body20 or its affiliates. Additionally, franchisees must acquire other equipment, interior graphics, exterior signage, the Technology System, music licenses, and payment processing services from designated or approved suppliers.
This provision grants Body20 significant control over the supply chain and the quality of goods and services used within the franchise system. While this can help maintain brand consistency and quality standards, it also limits a franchisee's autonomy in sourcing products and services. The FDD also states that Body20 can re-inspect and reevaluate approved suppliers and service providers and revoke approval if they fail to meet the current criteria. If a previously approved product is disapproved, franchisees must discontinue offering the service and may only sell existing inventory for up to 30 days following disapproval, or less if Body20 deems it detrimental to their reputation.
For a prospective Body20 franchisee, this means that costs to purchase and lease equipment, inventory, and other items and services that Body20 requires to obtain from them or their affiliates, from designated suppliers, or in accordance with their 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. Franchisees also have the option to request approval for alternative suppliers or service providers, but Body20 has the right to inspect the supplier's facilities, test product samples, and evaluate service providers, with the franchisee bearing the costs (the greater of $1,000 or Body20's actual costs) of this approval process, regardless of the outcome.
Body20 publishes its requirements for approved suppliers and service providers in its manuals, and it reserves the right to change, delete, or add to these specifications or quality standards at any time. These modifications will generally be uniform for all franchisees, and Body20 will provide written notice of any changes. Therefore, franchisees must stay informed of any updates to the manuals to ensure compliance and maintain the standards set by Body20.