Under what circumstances is the Rider to the Body20 Franchise Agreement used in Illinois?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ender 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, the Rider to the Franchise Agreement for use in Illinois is implemented under specific conditions. This rider is applied when any part of the franchise offering or sales activities takes place within Illinois, and the Body20 studio operated by the franchisee will be located in Illinois. Additionally, the rider is used if the franchisee is domiciled in Illinois, regardless of where the franchise was offered or sold.
This Illinois-specific rider modifies certain aspects of the standard Franchise Agreement to comply with the Illinois Franchise Disclosure Act. Specifically, it ensures that no provision in the agreement can force the franchisee to waive compliance with the Act or any other Illinois law. However, the rider clarifies that this does not prevent the franchisee from entering into settlement agreements, executing general releases related to potential lawsuits, or arbitrating claims under the United States Code.
Furthermore, the rider stipulates that Illinois law governs the agreement, except where federal law applies, such as the Federal Arbitration Act. It also voids any provision that designates jurisdiction and venue outside of Illinois, although arbitration may still occur outside the state. These modifications are designed to protect the rights of Body20 franchisees operating in Illinois and ensure compliance with state regulations.