Under what circumstances can Body20 lawfully require franchisees to adhere to certain pricing policies?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5. Pricing. If we determine that we may lawfully require you to charge certain prices for goods or services, certain minimum prices for goods or services, or certain maximum prices for goods or services, you must adhere to our pricing policies as set forth in the Manuals or otherwise in writing from time to time. If we set a suggested retail price for a good or service, we may prohibit you from advertising any other prices for such goods or services. Except as provided above and in Section 6.10(a) of the Franchise Agreement (Promotional Programs and Reciprocity), you are solely responsible for determining the prices that you charge customers. You must provide us with your current price list upon our request. (Franchise Agreement - Section 6.7)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 can require franchisees to adhere to certain pricing policies if they determine that they may lawfully do so. This includes charging certain prices, minimum prices, or maximum prices for goods or services. These pricing policies will be set forth in the Manuals or in writing.
Body20 may also set a suggested retail price for a good or service and prohibit franchisees from advertising any other prices for those goods or services. However, franchisees are otherwise solely responsible for determining the prices they charge customers, except as provided above or in Section 6.10(a) of the Franchise Agreement regarding promotional programs and reciprocity. Franchisees must provide Body20 with their current price list upon request.
This policy gives Body20 some control over pricing, but generally leaves pricing decisions to the franchisee. It is important for prospective franchisees to understand the circumstances under which Body20 can mandate pricing and how this might affect their profitability and competitive strategy. Franchisees should also be aware of the requirement to provide their price list to Body20 upon request, ensuring transparency in their pricing practices.