What section of the Body20 Franchise Agreement outlines the requirements for a franchisee to renew or extend the 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, Section 2.2 of the Franchise Agreement details the requirements for a franchisee to renew or extend their franchise term. If a franchisee meets specific conditions, they may be able to obtain two additional consecutive successor terms, each lasting five years.
The requirements for renewal include notifying Body20 of the intent to renew at least six months, but no more than 12 months, in advance. Franchisees must sign and return the successor franchise agreement, owner's guaranty, and any ancillary agreements, which Body20 may modify with potentially different terms and conditions than the original agreement. Additionally, franchisees must refurbish or renovate the studio to Body20's then-current specifications and execute a general release in favor of Body20 and its affiliates.
Further conditions include completing Body20's current training requirements for the Operating Principal and Designated Manager, securing the right to continue operating at the site from the landlord for the successor term, and ensuring full compliance with the Franchise Agreement and all other related agreements with Body20, its affiliates, and approved vendors. All related agreements must be fully complied with both when providing notice of intent to renew and at the expiration of the current term. Finally, the franchisee must pay Body20 the Successor Fee.
Prospective Body20 franchisees should carefully review Section 2.2 of the Franchise Agreement to fully understand the renewal requirements and ensure they can meet these conditions to extend their franchise term. Paying particular attention to potential modifications in the successor franchise agreement is crucial, as the terms and conditions may differ materially from the original agreement.