Under what conditions can a Body20 franchisee contest a tax, assessment, or governmental charge without immediate payment?

According to the 2025 Body20 Franchise Agreement, a franchisee can contest federal, state, or local income, service, sales, or other taxes without immediate payment if they are contesting their liability for these taxes in good faith. This means the franchisee must have a genuine and honest belief that the taxes are not rightfully owed.

For a prospective Body20 franchisee, this clause offers some protection. If a taxing authority assesses taxes that the franchisee reasonably believes are incorrect or unjustified, they are not immediately considered in default under the franchise agreement. This allows the franchisee time to challenge the assessment through proper legal channels without automatically violating the agreement.

However, the franchisee bears the responsibility of demonstrating that their contest is made in "good faith." This likely requires showing that they have a reasonable basis for their dispute and are actively pursuing a resolution. Failure to demonstrate good faith could lead to Body20 determining that the franchisee is in default, which could have serious consequences under the agreement.