Will the terms of the Franchise Agreement for subsequent Body20 studios be the same as 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 the 2025 Body20 Franchise Disclosure Document, the terms of the Franchise Agreement for subsequent studios may not be the same as the initial 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 include materially different terms than the Initial Franchise Agreement. These differences can include variations in fees and territorial rights.
However, the FDD states that no additional franchise fee will be owed under such agreements, as the development fee covers the franchise fees for all studios committed to under the Development Agreement. The franchisee must sign a Franchise Agreement for a studio before executing any lease, sublease, or purchase agreement, or commencing construction for that studio.
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 if required by law. This ensures that franchisees are informed of the current terms and conditions before committing to additional studios.