What section of the Body20 Franchise Agreement discusses the length of the 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. |
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, the length of the franchise term is detailed in Sections 2.1 and 2.3 of the Franchise Agreement. The initial term begins on the effective date of the Franchise Agreement and lasts for 10 years, starting from the date the Body20 studio opens for business. However, if a franchisee continues to operate the studio after the initial 10-year term expires, Body20 may consider the term extended on a month-to-month basis. This interim extension can be terminated by either Body20 or the franchisee with a 30-day written notice.
Furthermore, Section 2.2 outlines the possibility of renewal or extension of the franchise term. If a franchisee meets certain conditions, they may be eligible for two additional consecutive successor terms, each lasting five years. This provides an opportunity for long-term operation under the Body20 brand, contingent on fulfilling the franchisor's requirements.
The requirements for renewal, as detailed in Section 2.2, are extensive. The franchisee must notify Body20 of their intent to renew between six and twelve months before the current term expires. They must also sign and return a successor franchise agreement, owner's guaranty, and any other required ancillary agreements, which may contain materially different terms than the original agreement. Additionally, the studio must be refurbished to Body20's current specifications, and the franchisee and their owners must execute a general release in favor of Body20 and its affiliates. The operating principal and designated manager must complete Body20's then-current training requirements. The franchisee must secure the right to continue operating at the site for the duration of the successor term and be in full compliance with the Franchise Agreement and all related agreements. Finally, the franchisee must pay Body20 the successor fee. Meeting all these conditions is crucial for securing the additional five-year terms and continuing the Body20 franchise.