What is the 'Signing Deadline' for Body20 franchise agreements?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
different terms than the Initial Franchise Agreement, including different fees (though no Franchise Fee shall be owed under such agremeent) and territorial rights. You must sign a Franchise Agreement for a Studio before you may execute a lease, sublease, or purchase agreement intended for such Studio or commence construction of such Studio. We will not be obligated to offer you a Franchise Agreement for a Studio unless:
1. we have complied with all applicable franchise registration and disclosure laws and, if required by applicable laws, have provided you with a copy of our then-current Franchise Disclosure Document; and
2. you and any Affiliated Entities have fully complied with any Franchise Agreements that are in effect.
3.2 Deadlines. You must enter into Franchise Agreements and develop and open Studios in accordance with the deadlines set forth in the Development Schedule. Signing Deadline. By each "Signing Deadline" specified in the Development Schedule, you must have signed our then-current standard form of Franchise Agreement for the applicable number of Studios in the Development Area specified on the Development Schedule. Opening Deadline. By each "Opening Deadline" specified in the Development Schedule, you must have the applicable number of Studios in the Development Area open and operating. Discretionary Extension. We may, in our sole discretion, extend any Signing Deadline or any Opening Deadline, which we may condition on your payment of an Extension Fee and execution of a general release. The "Extension Fee" for each Studio will be $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such Studio is extended. Any extension that we grant you (or your Affiliated Entity) will apply only to the Studios for which you (or your Affiliated Entity) obtained the extension and will not extend, delay, or otherwise impact any other deadline under the Development Schedule. Disclosure Extension.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the 'Signing Deadline' refers to the date by which a franchisee must sign the standard Franchise Agreement for a specified number of studios within their development area, as outlined in the Development Schedule. The franchisee also has an 'Opening Deadline' by which they must have the applicable number of studios open and operating.
Body20 may, at its discretion, extend either the Signing Deadline or the Opening Deadline. However, this extension may be conditional, requiring the franchisee to pay an Extension Fee of $2,500 per month (or portion thereof) for each studio affected by the extension and to execute a general release. Any extension granted applies only to the specific studios for which it was obtained and does not affect other deadlines within the Development Schedule.
If a franchisee is unable to meet a Signing Deadline because Body20 fails to provide a timely Franchise Disclosure Document due to registration issues or amendments, Body20 will adjust the Signing Deadline and Opening Deadline accordingly. This adjustment will account for the delay in providing the FDD, and the franchisee will not be required to pay an Extension Fee or execute a general release in this specific circumstance. This protects the franchisee from penalties when delays are caused by Body20's administrative issues.