Can the terms of the Franchise Agreement for subsequent Body20 studios differ from the Initial Franchise Agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
For each additional Studio that you have the right to develop in accordance with the Development Schedule, you must sign our then-current Franchise Agreement, which may have materially 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:
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
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the terms of the Franchise Agreement for subsequent studios can indeed differ from the Initial Franchise Agreement. Specifically, for each additional Body20 studio a franchisee has the right to develop, they must sign the then-current Franchise Agreement. This agreement may have materially different terms than the Initial Franchise Agreement.
These differences can include variations in fees, although no additional Franchise Fee will be owed under such agreements due to the Development Fee already paid. The terms can also differ regarding territorial rights. This means that as Body20 evolves its franchise offering, franchisees committing to multiple locations may find the terms for their later studios are not identical to those of their first.
This is a fairly common practice in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or the brand's development. Prospective Body20 franchisees should carefully review the then-current Franchise Agreement for each new studio they plan to open and understand how the terms may have changed from their initial agreement. It is important to note that Body20 is not obligated to offer a Franchise Agreement for a studio unless they have complied with all applicable franchise registration and disclosure laws, including providing the franchisee with a copy of the then-current Franchise Disclosure Document.