What is the Technology System that Body20 franchisees must obtain, maintain, and use?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ed to such council. Any advertising council will be advisory and will not have any decision-making authority. We will have the right to modify or dissolve any advertising council that we create.
Computer System
You must obtain, maintain, and use the Technology System that we specify periodically in the Manuals to (i) enter and track purchase orders and receipts, attendance, and customer information, (ii) update inventory, (iii) enter and manage your customer's contact information, (iv) generate sales reports and analysis relating to the Studio, and (v) provide other services relating to the operation of the Studio. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute and pay any fees associated with any software license agreements or any related software maintenance agreements that we or the licensor of the software require. You must replace, upgrade, or update at your expense the Technology System as we may require periodically without limitation. We will establish reasonable deadlines for implementation of any changes to our Technology System requirements. There are no contractual limitations on our right to require changes to the Technology System.
Your Technology System will be dedicated for business uses relating to the operation of the Studio. You will (i) use the Technology System under the terms of our policies and operational procedures; (ii) transmit financial and operating data to us as required by the Manuals; (iii) do all things necessary to give us unrestricted access to the Technology System at all times (including users IDs and passwords, if necessary) so that we may independently download and transfer data via a connection that we specify; (iv) maintain the Technology System in good working order at your own expense; (v) ensure that your employees are adequately trained in the use of the Technology System and our related policies and procedures; and (vi) refrain from loading, and from permitting others to load, any unauthorized programs or games on any hardware included in the Technology System. You also must comply with all laws and payment card provider standards relating to the security of the Technology System, including the Payment Card Industry Data Security Standards. You are responsible for any and all consequences that may arise if the Technology System is not properly operated, maintained and upgraded or if the Technology System (or any of its components) fails to operate on a continuous basis or as we or you expect.
The Technology System typically includes one desktop computer, one laptop computer, two tablets, one printer, TV display components, one scanner, one credit card reader, related accessories, and the required point-of-sale system. Components of the Technology System must be connected to the Internet via a high-speed Internet connection. The Technology System will use third-party software from our approved vendors.
We estimate that the Technology System will cost between $3,800 and $7,500, which includes the cost of the hardware, software licenses, related equipment, and network connections,
including related installation costs. Currently, all components of the Technology System must be purchased from our approved vendors.
Beginning three months prior to the opening of the Studio, you must pay us the Technology Fee for certain technology-related services, which is currently $1,060 per month and pay MindBody, our approved POS system vendor, a license fee that is currently $599 per month.
We currently do not require you to enter into, or expect that you will need to enter into, any maintenance, updating, upgrading, or support contracts related to the Technology System. We, our affiliates, and third-party vendors are not obligated to provide you with any ongoing maintenance, repairs, upgrades, or updates. Vendors may be able to offer optional maintenance, updating, upgrading, or support contracts to you, which we estimate may cost approximately $2,500 per year.
You, at all times, must give us unrestricted and independent electronic access (including users IDs and passwords, if necessary) to the Technology System for the purposes of obtaining the information relating to the Studio. You must permit us to download and transfer data via a connection or such other connection that we specify on a real-time basis. There are no contractual limitations on our right to access data stored in the Technology System.
Manuals
The current Table of Contents of the Manuals is attached as Exhibit E to this Disclosure Document. The Manuals currently consist of 460 pages. We may amend, modify, or supplement the Manuals at any time, so long as such amendments, modifications, or supplements will, in our good faith opinion, benefit us and our existing and future franchisees or will otherwise improve the System.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees must obtain, maintain, and use a specified Technology System. This system is detailed in the Manuals and is essential for various operational aspects of the studio. It is used to enter and track purchase orders, receipts, attendance, customer information, update inventory, manage customer contact information, generate sales reports and analysis, and provide other services related to the studio's operation. If Body20 requires the use of proprietary software or the purchase of software from a designated vendor, franchisees must execute and pay any associated fees for software licenses or maintenance agreements. Franchisees are also responsible for replacing, upgrading, or updating the Technology System as required by Body20, with reasonable deadlines set for implementing changes. There are no contractual limitations on Body20's right to require changes to the Technology System. The Technology System must be dedicated to business uses relating to the operation of the Body20 studio. Franchisees must use the Technology System according to Body20's policies and operational procedures, transmit financial and operating data as required, and provide unrestricted access to Body20 at all times, including user IDs and passwords if necessary, for independent data downloading and transfer. The system must be maintained in good working order at the franchisee's expense, and employees must be adequately trained in its use. Franchisees must also prevent the loading of unauthorized programs or games on the hardware and comply with all laws and payment card provider standards, including the Payment Card Industry Data Security Standards.
The Technology System typically includes one desktop computer, one laptop computer, two tablets, one printer, TV display components, one scanner, one credit card reader, related accessories, and the required point-of-sale system. All components must be connected to the Internet via a high-speed connection and use third-party software from Body20's approved vendors. The estimated cost for the Technology System ranges from $3,800 to $7,500, covering hardware, software licenses, related equipment, and network connections, including installation costs. All components must be purchased from Body20's approved vendors.
Franchisees must pay a Technology Fee of $1,060 per month to Body20 for technology-related services, starting three months before the studio opens. Additionally, a license fee of $599 per month must be paid to MindBody, Body20's approved POS system vendor. While Body20 does not currently require maintenance, updating, upgrading, or support contracts related to the Technology System, vendors may offer optional contracts estimated to cost approximately $2,500 per year. Franchisees must provide unrestricted electronic access to the Technology System for Body20 to obtain information relating to the studio and permit real-time data downloading and transfer via a specified connection.