What is the 'System' that Body20 franchisees will use to operate their studios?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified in Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth in Appendix A. In this Agreement, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
RECITALS
- A. We and our Affiliates (as defined in Recital D) have accumulated knowledge and experience in the personal fitness industry on the basis of which we have developed and will continue to develop a distinctive business format and set of specifications and operating procedures (collectively, the "System") for the operation of fitness training studios that operate under the BODY20® mark ("Studios").
- B. The distinguishing characteristics of the System include, but are not limited to, our Studio designs, layouts, and identification schemes (collectively, the "Trade Dress"); our specifications for equipment, inventory, and accessories; our website or series of websites for the Studios (the "System Website"); our relationships with vendors; our software and computer programs; our online booking system; our reservation procedures; the classes and training sessions (collectively, "Sessions") that you offer to customers; any fitness programs and Sessions that we have developed and continue to develop; the accumulated experience reflected in our training program, operating procedures, customer service standards methods, and marketing techniques; and the mandatory and suggested policies, procedures, standards, specifications, rules, and requirements ("System Standards") set out in our operations manuals ("Manuals") and otherwise in writing. We may change, improve, add to, and further develop the elements of the System from time to time.
- C. We identify the Studios operating under the System by means of the BODY20® mark and certain other trademarks, service marks, trade names, signs, associated designs, artwork, and logos set forth in Appendix B (collectively, the "Marks"). We may designate for your use other trade names, service marks, and trademarks as Marks from time to time. These marks which will also be included in the term the "Marks." We refer to the BODY20® brand as the "Brand."
- D. As used in this Agreement, "Affiliate" as used with respect to you or us, means any corporation, limited liability company, partnership, or other form of entity ("Entity") directly or indirectly owned or controlled by, under common control with, or owning or controlling, you or us (as applicable). "Parent" refers to any Entity that directly or indirectly controls you. "Owner" refers to a person or Entity that has a legal or beneficial interest in you. For purposes of these definitions, "control" of a person means ownership or control of a majority of the voting ownership of the person or any combination of voting ownership and/or one or more agreements that together afford control of the management and policies of such person. We refer to you, your Owners, and/or your Affiliates individually or collectively as the "Franchisee Parties."
- E. If you are an Entity, all of your Owners are listed in Appendix A. If you are an Entity, the individual owner who you must appoint to have authority over all business decisions
related to your business and to have the power to bind you in all dealings with us will be referred to as your "Operating Principal."
- F. You desire to open and operate a Studio using the Marks and the System, and we are willing to grant to you a license to open and operate a Studio on the terms and conditions of this Agreement.
- NOW, THEREFORE, for and in consideration of the foregoing promises and the covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
Section 1 Rights Granted.
- 1.1 Grant of Franchise. Upon the terms and conditions of this Agreement, we grant to you a non-exclusive license (the "License") to operate one Studio using the Marks and the System.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the 'System' encompasses the distinctive business format, specifications, and operating procedures developed for operating fitness training studios under the Body20 brand. This system provides a framework for franchisees to follow in order to maintain consistency and quality across all Body20 locations.
The distinguishing characteristics of the Body20 System include studio designs, layouts, and identification schemes referred to as the 'Trade Dress'. It also includes specifications for equipment, inventory, and accessories, the System Website, vendor relationships, software and computer programs, the online booking system, and reservation procedures. Furthermore, the System includes the classes and training sessions offered to customers, any fitness programs and Sessions that Body20 has developed and continues to develop, the accumulated experience reflected in the training program, operating procedures, customer service standards methods, and marketing techniques. The System also includes the mandatory and suggested policies, procedures, standards, specifications, rules, and requirements ('System Standards') set out in Body20's operations manuals ('Manuals') and otherwise in writing.
Body20 retains the right to modify and improve the System over time, ensuring that franchisees stay current with industry best practices and evolving customer preferences. Franchisees are required to comply with the System Standards outlined in the manuals, with updates typically required to be implemented within 30 days of transmission, unless otherwise specified by Body20. Franchisees must also obtain, maintain, and use the hardware, software, other equipment, and network connections that Body20 specifies periodically in the Manuals or otherwise in writing.
Franchisees must adhere to Body20's policies and procedures related to member reciprocity amongst other studios and/or studios operated as part of the franchise systems in connection with the other brands owned and/or licensed by Body20 or its Affiliates. Franchisees, their Operating Principal, Designated Managers, or any representatives that Body20 designates must attend franchise conventions, meetings, product shows or demonstrations, and teleconferences that Body20 may require periodically in the Manuals or otherwise in writing. If a Franchisee Advisory Council is established, franchisees must participate in all council-related activities and meetings and must pay any dues related to the administration of the Franchisee Advisory Council.