Under what circumstances does the Body20 Area Development Agreement expire?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless this Agreement is terminated sooner as provided in other sections of this Agreement, this Agreement expires at midnight on the earlier of (i) the last Opening Deadline date listed on the Development Schedule, or (ii) the opening of the last Studio to be developed pursuant to the Development Schedule (the "Expiration Date"). Upon the expiration or termination of this Agreement, we and our Affiliates have the right, without any restrictions whatsoever, to: (a) develop and operate, and license third parties to develop and operate, Studios having their physical locations within the Development Area, subject only to your (or an Affiliated Entity's) rights within a Territory under a Franchise Agreement with us then in effect; and (b) continue to engage in any other activities that we (and our Affiliates) desire within and throughout the Development Area.
6. Termination.
- 6.1 Events of Default. Any one or more of the following constitutes an "Event of Default" under this Agreement:
- (a) You (or your Affiliated Entities) fail to execute the applicable number of required Franchise Agreements by any Signing Deadline specified in the Development Schedule;
- (b) You (or your Affiliated Entities) fail to have open and operating the applicable number of required Studios specified in the Development Schedule by any Opening Deadline specified in the Development Schedule;
- (c) You, your Owners, or your Affiliates breach or commit a default under any Franchise Agreement or other agreement executed with us or our Affiliates (a "Related Agreement") and we or our Affiliates (i) terminate such Related Agreement or (ii) have the right to terminate such Related Agreement, even if we do not exercise such termination right; or
- (d) You, your Owners, or your Affiliates breach or otherwise fail to comply fully with any other provision contained in this Agreement, including Section 8 (Noncompete Covenants).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Area Development Agreement will expire at midnight on the earlier of two conditions. The first condition is the last Opening Deadline date listed on the Development Schedule. The second is the opening of the last Body20 studio to be developed according to the Development Schedule. This date is referred to as the Expiration Date.
Upon expiration or termination of the Development Agreement, Body20 and its affiliates have the right to develop and operate Body20 studios within the Development Area without restrictions. This is subject to the franchisee's or an affiliated entity's rights within a Territory under a Franchise Agreement with Body20 then in effect. Body20 and its affiliates can also continue to engage in any other activities they desire within the Development Area.
Additionally, the Development Agreement can be terminated sooner if an Event of Default occurs. Events of Default include failing to execute the required number of Franchise Agreements by any Signing Deadline, failing to have the required number of studios open and operating by any Opening Deadline, breaching any Franchise Agreement or Related Agreement, or failing to comply with any other provision of the Development Agreement, including noncompete covenants.