Under what conditions might Body20 extend the Signing Deadline or Opening Deadline?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
fferent terms than the Initial Franchise Agreement, including different fees (though no Franchise Fee shall be owed under such agremeent) and territorial rights. You must sign a Franchise Agreement for a Studio before you may execute a lease, sublease, or purchase agreement intended for such Studio or commence construction of such Studio. We will not be obligated to offer you a Franchise Agreement for a Studio unless:
1. we have complied with all applicable franchise registration and disclosure laws and, if required by applicable laws, have provided you with a copy of our then-current Franchise Disclosure Document; and
2. you and any Affiliated Entities have fully complied with any Franchise Agreements that are in effect.
3.2 Deadlines. You must enter into Franchise Agreements and develop and open Studios in accordance with the deadlines set forth in the Development Schedule. Signing Deadline. By each "Signing Deadline" specified in the Development Schedule, you must have signed our then-current standard form of Franchise Agreement for the applicable number of Studios in the Development Area specified on the Development Schedule. Opening Deadline. By each "Opening Deadline" specified in the Development Schedule, you must have the applicable number of Studios in the Development Area open and operating. Discretionary Extension. We may, in our sole discretion, extend any Signing Deadline or any Opening Deadline, which we may condition on your payment of an Extension Fee and execution of a general release. The "Extension Fee" for each Studio will be $2,500 per month (or portion of a month) that the Signing Deadline or Opening Deadline for such Studio is extended. Any extension that we grant you (or your Affiliated Entity) will apply only to the Studios for which you (or your Affiliated Entity) obtained the extension and will not extend, delay, or otherwise impact any other deadline under the Development Schedule. Disclosure Extension.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 may extend the Signing Deadline or Opening Deadline under certain circumstances. Body20 has the discretion to extend these deadlines, potentially requiring the franchisee to pay an Extension Fee and execute a general release. The Extension Fee is set at $2,500 per month (or any portion thereof) for each studio affected by the extension. Any extension granted applies only to the specific studios for which it was obtained and does not impact other deadlines outlined in the Development Schedule.
Additionally, if Body20 is unable to deliver a Franchise Disclosure Document on time due to issues like a lapse in franchise registration or ongoing amendments, the Signing Deadline and Opening Deadline will be adjusted to account for the delay in providing the document. This adjustment will not require the franchisee to pay an Extension Fee or execute a general release.
Furthermore, if a Body20 studio is damaged or destroyed due to circumstances beyond the franchisee's control, the franchisee must promptly notify Body20 of the event. The franchisee is then expected to diligently work to repair and restore the studio at the same location or an alternative site approved by Body20 within the Development Area.