Which section of the Body20 Initial Franchise Agreement governs dispute resolution between the Franchisor and the Guarantors?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Dispute Resolution. Section 16 (Dispute Resolution and Governing Law) of the Initial Franchise Agreement is hereby incorporated by reference and will be applicable to any and all disputes between Franchisor and any of the Guarantors, as though the Guarantors were the "Franchisee" referred to in the Initial Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Section 16 of the Initial Franchise Agreement, titled "Dispute Resolution and Governing Law," governs dispute resolution between Body20 Franchisor LLC and the Guarantors. This section is incorporated by reference into the Payment and Performance Guarantee agreement. This means that any disputes arising between Body20 and the Guarantors will be subject to the dispute resolution processes outlined in Section 16 of the Initial Franchise Agreement, as if the Guarantors were the franchisee.
This incorporation ensures that the Guarantors, who are guaranteeing the franchisee's obligations, are also bound by the same dispute resolution mechanisms as the franchisee. It provides clarity and consistency in how disputes involving the Guarantors will be handled. The Guarantors are essentially treated as the "Franchisee" for the purposes of this section.
As a prospective franchisee, it is important to carefully review Section 16 of the Initial Franchise Agreement to understand the specific dispute resolution procedures, such as mediation or arbitration, that would apply not only to you but also to your Guarantors. Understanding these procedures can help you anticipate potential costs and time commitments associated with resolving disputes.