What section of the Body20 Franchise Agreement is modified by the addition described in Item 23?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchised Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and/or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Item 23 includes additional state-required disclosures and riders that may modify the Franchise Agreement. Specifically, for franchisees subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, a provision is added that prevents the franchisee from waiving claims under state franchise law or disclaiming reliance on statements made by Body20. This provision supersedes any other conflicting terms in any document related to the franchise agreement.
In practical terms, this means that Body20 franchisees in the listed states retain their rights to pursue legal claims related to fraud or misrepresentation, regardless of any agreements they may have signed. This is a significant protection for franchisees, as it ensures they cannot inadvertently forfeit their legal rights through standard contract language. The added disclosures serve to protect franchisees by ensuring that they cannot waive certain rights granted to them by state franchise laws.
For prospective Body20 franchisees in these states, it is crucial to understand this provision and how it affects their rights. They should consult with a legal professional to fully grasp the implications of this clause and how it interacts with other aspects of the franchise agreement. This ensures that franchisees are fully aware of their legal protections and can make informed decisions about entering into the franchise agreement.