Under what circumstances is the Rider to the Body20 Franchise Agreement signed?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
fluence by the franchisor to induce a franchisee to surrender any rights given to him under the franchise, that provision may not be enforceable. Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any
ground for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
- The following paragraph is added to the end of Item 17:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
WASHINGTON
(See State-Specific Riders to the Franchise Agreement.)
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN ILLINOIS
THIS RIDER (this "Rider") is made and entered into by and between BODY20 Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
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- BACKGROUND. We and you are parties to that certain Franchise Agreement dated __________________________, 20___ (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) any of the offering or sales activity relating to the Franchise Agreement occurred in Illinois and the Studio that you will operate under the Franchise Agreement will be located in Illinois, and/or (b) you are domiciled in Illinois.
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- GOVERNING LAW. Section 16.1 of the Franchise Agreement is deleted and replaced with the following:
Except to the extent governed by the Federal Arbitration Act or other federal law, Illinois law governs this Agreement.
- CONSENT TO JURISDICTION. The following is added to the end of Section 16.3(d) of the Franchise Agreement:
Notwithstanding the foregoing, in conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in this Agreement that designates jurisdiction and venue in a forum outside of Illinois is void. However, this Agreement may provide for arbitration to take place outside of Illinois.
**4.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, there are several circumstances that require a rider to the franchise agreement. One instance is when the franchisee is domiciled in Maryland, or the Body20 studio will be located in Maryland. Another instance is when any of the offering or sales activity relating to the franchise agreement occurred in Illinois and the studio that the franchisee will operate under the franchise agreement will be located in Illinois, or the franchisee is domiciled in Illinois. Similarly, a rider is required if the franchisee is domiciled in the State of New York and the studios that they will operate and develop under the Development Agreement will be located in New York, or any of the offering or sales activity relating to the Development Agreement occurred in New York. Finally, a rider is required if the franchisee is domiciled in Rhode Island and the studio that they will operate under the Franchise Agreement will be located in Rhode Island, or any of the offering or sales activity relating to the Franchise Agreement occurred in Rhode Island.
These riders modify specific sections of the standard Body20 franchise agreement to comply with state-specific franchise laws. For example, the Maryland rider includes a provision ensuring that the general release required for renewal, sale, or transfer of the franchise does not waive liabilities arising under Maryland's franchise law. The Illinois rider replaces the governing law section of the franchise agreement, stipulating that Illinois law governs the agreement, and adds a clause regarding consent to jurisdiction. The New York rider allows the franchisee to terminate the agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York. The Rhode Island rider adds to the end of Section 16.1 of the Franchise Agreement that Rhode Island law will apply to claims.
For a prospective Body20 franchisee, it's crucial to understand which state-specific rider applies to their franchise agreement based on their domicile and the location of their studio. Franchisees should carefully review the rider with legal counsel to understand their rights and obligations under the laws of their specific state. These riders demonstrate that Body20 takes steps to comply with varying state franchise regulations, but it is the franchisee's responsibility to ensure they are fully informed.