Under what circumstances will Body20 reimburse a Body20 franchisee for expenses, including attorney's fees?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to reimburse us for all expenses we and our affiliates reasonably incur (including attorneys' fees): (i) to enforce the terms of this Agreement or any obligation owed to us by any of the Franchisee Parties (whether or not we initiate a legal proceeding, unless we initiate and fail to substantially prevail in such court or formal legal proceeding); and (ii) in the defense of any claim any of the Franchisee Parties assert against us on which we substantially prevail in court or other formal legal proceedings.
We agree to reimburse you for all expenses you reasonably incur (including attorneys' fees): (a) to enforce the terms of this Agreement or any obligation owed to you by us (whether or not you initiate a legal proceeding, unless you initiate and fail to substantially prevail in such court or formal legal proceeding); and (b) in the defense of any claim we assert against you on which you substantially prevail in court or other formal legal proceedings
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 will reimburse a franchisee for expenses, including attorney's fees, if the franchisee has to enforce the terms of the Franchise Agreement or any obligation that Body20 owes to them. This applies whether or not the franchisee initiates a legal proceeding, unless the franchisee initiates the proceeding and does not substantially prevail in court.
In addition, Body20 will reimburse the franchisee for all reasonable expenses, including attorney's fees, if the franchisee has to defend against any claim that Body20 asserts against them, and the franchisee substantially prevails in court or other formal legal proceedings.
This arrangement is fairly typical in franchising, where both parties may be entitled to reimbursement of legal costs if they win a dispute. It is important for a prospective Body20 franchisee to understand these conditions, as they could be responsible for Body20's legal fees in certain situations.