Can Body20 require franchisees to purchase or lease Operating Assets only from suppliers or service providers that Body20 has expressly approved?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You may sell products and services only in the varieties, forms, and packages that we have approved in accordance with our System Standards. You must maintain a sufficient supply of required products to meet the inventory standards we prescribe in the Manuals (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).
We may require you to purchase merchant processing services from us, our affiliates or an approved or designated vendor. The payment processor may process all credit card payments related to your Studio and remit payment to you of all monies owed, after withholding any Operating Fees (i.e., Royalty Fees, Brand Fund Fees, Technology Fees, and Music Licensing Fees) payable to us and any payment processing fees payable to the processor.
You must conduct all Sessions in accordance with the System. You must offer at the Studio any Sessions that we deem to be mandatory. Any Sessions that you or your fitness coaches develop must be consistent with the System Standards that we specify from time to time. If we disapprove of any Sessions that you offer, you must immediately discontinue offering the Session or modify the Session in accordance with our instructions.
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 mandate that franchisees acquire all furniture, fixtures, signs, and equipment, which are collectively referred to as "Operating Assets," exclusively from suppliers or service providers that Body20 has explicitly approved. This stipulation ensures that all elements essential for running the Body20 studio meet the franchisor's standards.
This requirement extends not only to Operating Assets but also to products, supplies, and services that franchisees purchase for resale or for use within their studios. These items must adhere to specifications established by Body20, be of a specific brand, kind, or model, and be sourced only from approved suppliers or a single designated source, which may include Body20 itself or its affiliates.
If a franchisee wishes to use a non-approved supplier, they must seek approval from Body20. The approval process involves a written request, submission of requested information, and potential inspection of the supplier's facilities. The franchisee bears the cost of this evaluation, with a minimum charge of $1,000 or the actual costs incurred by Body20 and its affiliates. Body20 retains the right to approve or disapprove any supplier based on its judgment, and failure to receive approval within 30 days is considered a disapproval.
Body20 also reserves the right to re-inspect approved suppliers and revoke approval if they no longer meet the company's criteria. If a previously approved product or service is disapproved, franchisees must discontinue offering the service immediately and may sell the product from existing inventory for up to 30 days, or a shorter period if Body20 deems it necessary to protect its reputation. After this period, the franchisee must dispose of the remaining inventory as directed by Body20.