What are the requirements for a Body20 franchisee to renew or extend their franchise term?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Sections 2.1 and 2.3 | Begins on the effective date of your Franchise Agreement and continues for 10 years from the date you open your Studio for business. If you continue operating after expiration, we may treat the term as extended on a month-to month basis until either we or you deliver notice ending that extension, in which case that interim period will terminate 30 days after the other party's receipt of the notice to terminate the interim period. |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the conditions, you may obtain two additional consecutive successor terms of five years each. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You have notified us of your intent to renew at least six months in advance but no more than 12 months in advance; you and your Owners (as applicable) have signed and returned to us the successor franchise agreement, owner's guaranty, and ancillary agreements (modified as we consider necessary to reflect changes that we consider appropriate for the successor term), which may have materially different terms and conditions than your original Franchise Agreement; you have refurbished or renovated the Studio to our then-current specifications; you and your Owners have executed a general release in favor of us and our affiliates; you have completed, and have had your Operating Principal and Designated Manager complete, our then-current training requirements; you have secured from your landlord the right to continue operating at the Site for the remainder of the successor term; you, your Owners, and your affiliates (the ("Franchisee Parties") have fully complied with the Franchise Agreement and all other agreements between any Franchisee Party and us, our affiliates, and/or our approved vendors related to the Studio or any other Studios (each, a "Related Agreement"); at the time you provide notice of your intent to enter into a successor term and at the expiration of the then-current term of the Franchise Agreement, the Franchisee Parties are in full compliance with all Related Agreements; and you have paid us the Successor Fee. |
| d. | Termination by franchisee | Section 14.3 | If we commit a material breach of the Franchise Agreement and we fail to cure the breach or take reasonable steps to begin curing the breach within 60 days after receiving notice from you, you may terminate the Franchise Agreement. |
| Provision | Section in Franchise Agreement | Summary | |
| ---- | ------------------------------------------- | -------------------------------------- | ---------------------------------------------------- |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for two additional terms of five years each, provided certain conditions are met. To begin, the franchisee must notify Body20 of their intent to renew at least six months, but no more than 12 months, before the current term expires. This provides Body20 with ample time to assess the franchisee's eligibility and prepare the necessary documentation.
In order to renew, the franchisee and their Owners must sign and return the successor franchise agreement, owner's guaranty, and any ancillary agreements. These documents may be modified by Body20 to reflect changes they deem appropriate for the successor term, and the terms and conditions could be materially different from the original agreement. The franchisee is also required to refurbish or renovate the studio to meet Body20's then-current specifications, ensuring that the studio maintains a consistent brand image and meets current customer expectations. Additionally, the franchisee and their Owners must execute a general release in favor of Body20 and its affiliates, releasing them from any potential liabilities or claims.
Further requirements include completing Body20's then-current training programs for both the Operating Principal and Designated Manager, ensuring that the studio's leadership is up-to-date with the latest operational standards and practices. The franchisee must also secure the right to continue operating at the current site for the duration of the successor term, which may involve renegotiating the lease with the landlord. The franchisee, their Owners, and their affiliates must be in full compliance with the Franchise Agreement and all other agreements with Body20, its affiliates, and approved vendors. Finally, the franchisee must pay Body20 the Successor Fee, which compensates Body20 for granting the renewal and providing continued support and brand recognition.