Can Body20 terminate the franchise agreement if any officer or director is convicted of a crime?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) You, any Owner, or any of your officers or directors are convicted of or plead nolo contendere to a felony, a crime involving moral turpitude or consumer fraud, or any other crime or offense that we believe is likely to have an adverse effect on our franchise system, the Marks and any associated goodwill, or the Brand (an "Adverse Effect") or you, your Affiliates, any Owner, or any of your officers or directors has engaged in or engages in activities that, in our reasonable opinion, have an Adverse Effect;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 can terminate the franchise agreement if any owner, officer, or director is convicted of a crime. Specifically, if any of these individuals are convicted of a felony, a crime involving moral turpitude or consumer fraud, or any other crime or offense that Body20 believes is likely to have an adverse effect on their franchise system, the Marks and any associated goodwill, or the Brand, it constitutes grounds for termination.
This provision gives Body20 broad discretion to terminate the agreement based on a criminal conviction, even if the crime is not directly related to the Body20 business. The determination of whether a crime is likely to have an "Adverse Effect" on the franchise system is made by Body20.
For a prospective Body20 franchisee, this means that the criminal history of any owner, officer, or director could impact the franchise agreement. It is important to ensure that all individuals involved in the ownership or management of the franchise have a clean criminal record to avoid potential termination of the agreement.