Can Body20 require franchisees to purchase specific supplies for their studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
provide financing to franchisees either directly or indirectly in connection with their initial 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. 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.
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.
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 purchase or lease furniture, fixtures, signs, equipment, products, supplies, and services that meet certain criteria. These criteria include meeting Body20's established specifications, being a specific brand, kind, or model, being purchased or leased only from expressly approved suppliers or service providers, or being purchased or leased only from a single designated source, which may include Body20 or its affiliates.
Body20 requires franchisees to purchase specific items from them or their affiliates, including the Initial FF&E Package, the Presale Kit, the Initial Retail Inventory Kit, certain ongoing equipment purchases, and replacement inventory and sales materials and accessories. They also require franchisees to purchase certain other equipment and supplies, interior graphics and exterior signage, the Technology System, music licenses, and payment processing services from designated or approved suppliers or service providers.
The FDD estimates that the cost to purchase and lease all equipment, inventory, and other items and services that Body20 requires franchisees to obtain from them or their affiliates, from designated suppliers, or according to 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 must also get Body20's written approval for any project managers, architects, engineers, or designers used during studio development and construction.
Body20 also maintains the right to re-inspect the facilities and products of any approved supplier and to reevaluate the services provided by any service provider and to revoke approval if they fail to meet Body20's criteria. If approval is revoked for a product or service, franchisees must discontinue offering the service immediately and may only sell existing inventory of the product for up to 30 days, or a shorter period if Body20 deems continued sale detrimental to their reputation. After this period, franchisees must dispose of the remaining inventory as directed by Body20.