Where are the State-Required Development Agreement Riders located within the Body20 franchise documents?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchise Agreement | Exhibit A |
|---|---|
| Payment and Performance Guarantee | Appendix C to the Franchise Agreement |
| Lease Rider | Appendix D to the Franchise Agreement |
| Development Agreement | Exhibit B |
| General Release | Exhibit G |
| Nondisclosure and Noncompete Agreement | Exhibit H |
| State-Required Franchise Agreement Riders | Exhibit I |
| State-Required Development Agreement Riders | Exhibit I |
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, state-required riders to the Development Agreement are found in Exhibit I. This exhibit contains specific modifications or additions to the standard Development Agreement that are mandated by the franchise laws of certain states. These riders are designed to ensure that the franchise agreement complies with state-specific regulations, providing additional protections or disclosures to franchisees in those states.
For a prospective Body20 franchisee, it is crucial to carefully review Exhibit I to determine if a state-specific rider applies to their Development Agreement, especially if they are developing studios in a state with franchise-specific laws. These riders can modify the terms of the agreement, such as termination rights, dispute resolution processes, or waivers of certain legal claims. Understanding these state-specific provisions is essential for ensuring compliance and protecting the franchisee's rights.
For example, the FDD includes a Rider to the Body20 Franchisor LLC Development Agreement for use in Illinois. It states that the rider is part of the Development Agreement because offering or sales activity relating to the Development Agreement occurred in Illinois, the studios will be located in Illinois, and/or the franchisee is domiciled in Illinois. This rider also includes that any condition purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act is void.