Does Body20 have the right to inspect the construction of a franchisee's studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
8.4 Inspections and Right to Obtain Information.
- (a) Inspections. We have the right, through our employees and any agents we designate, at any time during business hours and without prior notice to you to: (i) inspect the Site and Studio for compliance with the Manuals, (ii) videotape, photograph or otherwise record the operation of the Studio, (iii) interview your employees, landlord, and customers, (iv) examine the records, invoices, payroll records, check stubs, sales tax records and returns, and other supporting records and documents of the Studio, and (v) examine your income tax records and any other information, records or properties relating to the ownership, management, or operation of the Studio. We may require you to install and maintain, at your expense, a video surveillance system that we designate which we may access remotely through a connection that we specify to ensure compliance with our standards and the Manuals. Our right to inspect your business records includes records maintained electronically or off-site. You must cooperate with such inspections by giving our representatives unrestricted access and rendering such assistance as our representatives may reasonably request. If we notify you of any deficiencies after the inspection, you must promptly take steps to correct them. If you fail to correct any deficiencies within a reasonable time, not to exceed 30 days, we have the right to correct such deficiencies and charge you up to 120% of our and our affiliates' costs and expenses incurred in making such corrections. Any inspections will be made at our expense, unless the inspection is necessitated by your repeated or continuing failure to comply with any provision of this Agreement, in which case we may charge you up to 120% of our and our affiliates' costs and expenses related to making such inspection, including the wages and cost of travel and living expenses for our representatives.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to inspect the franchisee's studio. Specifically, Body20 can inspect the site and studio for compliance with the manuals at any time during business hours and without prior notice.
This right extends to various aspects of the studio's operations, including the physical premises. Body20 can videotape, photograph, or otherwise record the operation of the studio, which would include the construction phase if it were ongoing. They can also interview the franchisee's landlord. Furthermore, Body20 can examine records, invoices, and other documents related to the studio's operation.
Body20 can also require the franchisee to install and maintain a video surveillance system at the franchisee's expense, which Body20 may access remotely. The franchisee must cooperate with these inspections by providing unrestricted access and assistance. If deficiencies are found, the franchisee must correct them within a reasonable time, not exceeding 30 days. Failure to do so allows Body20 to correct the deficiencies and charge the franchisee up to 120% of the costs incurred.
While the franchisee bears the initial cost of compliance, Body20 typically covers inspection expenses unless the inspection is due to the franchisee's repeated failure to comply with the agreement. In such cases, Body20 can charge the franchisee up to 120% of the inspection costs, including wages, travel, and living expenses for their representatives. This comprehensive inspection right ensures Body20 can maintain brand standards and operational consistency across all franchise locations.