What are the two options for fulfilling the pre-opening membership requirement for a Body20 studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
o us.
- 4.5 Opening Deadline. You must complete construction of and open your Studio for business no later than 270 days after the Effective Date (the "Opening Deadline"), unless we grant you an extension in writing. We may, in our sole discretion, extend the Opening Deadline, which we may condition on you agreeing to pay an extension fee of $2,500 for each month (or portion of a month) for which the Opening Deadline is extended and you executing a general release. You may not open the Studio until you have received our written approval, which we will not provide until (i) we have viewed the certificate of occupancy, (ii) confirmed that you have complied with the Plans, (iii) confirmed that you have complied with the pre-opening marketing obligations set forth in this Agreement and have done so in accordance with our System Standards as set forth in the Manuals, (iv) your initial employees have satisfied any applicable training requirements that we designate; and (v) you have met the required minimum number of pre-opening members and/or paid membership sales as set forth in Appendix A (the "Pre-
Opening Membership Requirement"), with the intent and effect that such pre-sold memberships will commence immediately on the Opening Date. You must open the Studio for business to the public within ten days from the date we give our written approval.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees must meet a pre-opening membership requirement before opening their studio. This requirement can be satisfied in one of two ways. First, the franchisee can meet the required minimum number of pre-opening members and/or paid membership sales. The intent is that these pre-sold memberships will commence immediately on the Opening Date.
Alternatively, if the franchisee fails to meet the Pre-Opening Membership Requirement, Body20 may require the franchisee to spend an additional $10,000 for grand opening advertising and promotion for the studio. Body20 reserves the right to require the franchisee to pay the $15,000 (or, as applicable $25,000) minimum grand opening spend, and Body20 will use those funds to conduct grand opening advertising and promotion for the studio on the franchisee's behalf.
The pre-opening membership requirement is a critical aspect of launching a Body20 franchise. Failing to meet this requirement can lead to additional expenses for advertising and promotion, potentially impacting the franchisee's initial investment and profitability. Prospective franchisees should carefully review Appendix A of the Franchise Agreement, as referenced in the quote, to understand the specific pre-opening membership targets and associated costs for their location. They should also discuss marketing strategies with Body20 to ensure they can effectively meet the pre-opening requirements or budget accordingly for the alternative advertising spend.