Does Body20 require franchisees to purchase the Presale Kit from Body20 or its affiliates?
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.
When you develop and construct your Studio, we have the right to require you to obtain our prior written approval of any project managers, architects, engineers, or designers that you would like to use before you engage them.
One of Sequel Brands' officers owns an interest in us and our affiliates, and we are a supplier with whom you are required to do business. None of our or Sequel Brands' officers own an interest in any unaffiliated suppliers with whom you are required or recommended to do business.
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, franchisees are required to purchase the Presale Kit from Body20 or its affiliates. This is part of a broader requirement where Body20 mandates that franchisees obtain several items directly from them or their affiliated entities.
Besides the Presale Kit, these mandatory purchases include the Initial FF&E Package, the Initial Retail Inventory Kit, certain ongoing equipment purchases, and replacement inventory, sales materials, and accessories. This arrangement ensures that Body20 maintains control over key aspects of the brand's presentation and operational standards.
For a prospective franchisee, this means that a significant portion of their initial and ongoing expenses will be directed to Body20 or its affiliates. While this could ensure consistency and quality, it also limits the franchisee's ability to shop around for potentially lower prices or alternative suppliers. It is important to note that one of Sequel Brands' officers owns an interest in Body20 and its affiliates, which creates a potential conflict of interest, as Body20 is a supplier with whom franchisees are required to do business.