Can Body20 require franchisees to purchase specific furniture for their studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
l investment requirements.
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 specific furniture for their studios. Body20 can mandate that all furniture, fixtures, signs, and equipment, which are collectively referred to as "Operating Assets", meet certain specifications. These specifications can include requiring that these items be a specific brand, kind, or model.
Furthermore, Body20 can require franchisees to purchase or lease these Operating Assets only from suppliers or service providers that Body20 has expressly approved. They can also mandate that these items be purchased or leased only from a single source that they designate, which may include Body20 itself, its affiliates, or a buying cooperative organized by them. This means a franchisee might not be able to shop around for the best prices or preferred styles, as they must adhere to Body20's requirements.
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 their specifications ranges from 75% to 90% of the total cost to establish a Studio. For the ongoing operation of the studio, these costs represent 30% to 45% of the total cost to purchase and lease equipment, inventory, and other items. This indicates a significant portion of a franchisee's initial and ongoing investment is subject to Body20's control over sourcing and specifications.