Does Body20 reserve the right to designate themselves as approved suppliers in the future?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
at 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.
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 retains the right to designate itself or its affiliates as approved or required suppliers for additional goods or services in the future. Currently, franchisees are required to purchase specific items such as the Initial FF&E Package, Presale Kit, Initial Retail Inventory Kit, certain ongoing equipment, and replacement inventory directly from Body20 or its affiliates.
This reservation of rights allows Body20 to control the supply chain and potentially profit from franchisee purchases. For a prospective franchisee, this means that the costs of goods and services required to operate the Body20 studio could increase if Body20 or its affiliates become the designated suppliers for more items. It also reduces the franchisee's ability to shop around for the best prices on those items.
While Body20 already mandates specific purchases from itself or affiliated entities, the ability to expand this requirement in the future could impact a franchisee's profitability and operational flexibility. Franchisees should consider this potential change when evaluating the overall investment and ongoing costs associated with a Body20 franchise. 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 these are suppliers with whom franchisees are required to do business.