Under what conditions can Body20 assume management of a Body20 Studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(vii) undertake or perform on your behalf any obligation or duty that you are required to, but fail to, perform under this Agreement. You will reimburse us upon demand for all costs and expenses that we reasonably incur in performing any such obligation or duty; and/or
(viii) enter the Studio's premises and assume the management of the Studio ourselves or appoint a third party (who may be our Affiliate) to manage the Studio. We or our appointee may charge you the Management Fee during the period of management. All funds from the operation of the Studio while we or our appointee assumes its management will be kept in a separate account, and all of the expenses of the Studio will be charged to that account. We or our appointee has a duty to utilize only reasonable efforts and will not be liable to you for any debts, losses, or obligations the Studio incurs, or to any of your creditors for any products or services the Studio purchases, while managing it. You shall not take any action or fail to take any action that would interfere with our or our appointee's exclusive right to manage the Studio and may, in our sole discretion, be prohibited from visiting the Studio so as to not interfere with its operations. Our (or our appointee's) management of the Studio will continue for intervals lasting up to 90 days each (and, in any event, for no more than a total of one year), and we will during each interval periodically discuss the Studio's status with you.
(c) Exercise of Other Remedies. Our exercise of our rights under Section 14.2(b) (Other Remedies) will not (i) be a defense for you to our enforcement of any other provision of this Agreement or waive or release you from any of your other obligations under this Agreement, (ii) constitute an actual or constructive termination of this Agreement, or (iii) be our sole or exclusive remedy for your default. You must continue to pay all fees and otherwise comply with all of your obligations under this Agreement following our exercise of any of these rights. If we exercise any of our rights under Section 14.2(b), we may thereafter terminate this Agreement without providing you with any additional corrective or cure period, unless the default giving rise to our right to terminate this Agreement has been cured to our reasonable satisfaction.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 has the right to assume management of a studio under certain circumstances. Specifically, if a franchisee fails to perform any obligation or duty required under the Franchise Agreement, Body20 can step in to perform that obligation on the franchisee's behalf. The franchisee is then responsible for reimbursing Body20 for all costs and expenses incurred during this process.
Additionally, Body20 can enter the studio's premises and assume management directly or appoint a third party, potentially an affiliate, to manage the studio. During this period of management, the franchisee may be charged a Management Fee. Funds generated from the studio's operation will be kept in a separate account, and all studio expenses will be charged to that account. Body20 or its appointee is only required to utilize reasonable efforts and will not be liable for any debts, losses, or obligations incurred by the studio during their management, nor are they liable to the franchisee's creditors.
The management period can last for intervals of up to 90 days each, but no more than a total of one year. During each interval, Body20 will periodically discuss the studio's status with the franchisee. The franchisee is prohibited from interfering with Body20's or its appointee's management of the studio and may even be restricted from visiting the studio to avoid interference. Body20's exercise of these rights does not excuse the franchisee from their other obligations under the agreement, including the payment of fees, and does not prevent Body20 from later terminating the agreement if the underlying default is not resolved.