Under what conditions may Body20 require franchisees to purchase merchant processing services from them or their affiliates?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
s as set forth in the Manuals or otherwise in writing from time to time. If we set a suggested retail price for a good or service, we may prohibit you from advertising any other prices for such goods or services. Except as otherwise provided in this Section and in Section 6.10(a) (Promotional Programs and Reciprocity), you are solely responsible for determining the prices that you will charge Members and customers. You must provide us with your current price list upon our request.
6.8 Products, Supplies, Operating Assets, and Services.
- (a) Purchases. We have the right to require that products, supplies, Operating Assets, and services that you purchase for resale or purchase or lease for use in your Studio: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from suppliers or service providers that we have expressly approved; and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our Affiliates or a buying cooperative organized by us or our Affiliates). To the extent that we establish specifications, require approval of suppliers or service providers, or designate specific suppliers or service providers for particular items or services, we will publish our requirements in the Manuals.
- (b) Products and Services You May Offer. You may offer in the Studio to customers only the products, services, and Sessions that we have approved in writing. In addition, you must offer the specific products, services, and Sessions that we require in the Manuals or otherwise in writing. We may change these specifications periodically, and we may designate specific products or services as optional or mandatory. You must offer all products, services, or Sessions that we designate as mandatory.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to mandate that franchisees purchase or lease products, supplies, operating assets, and services for resale or use in their studio, including merchant processing services, under specific conditions. These conditions include ensuring that the items or services meet Body20's established specifications, are of a specific brand, kind, or model, are purchased or leased only from suppliers or service providers that Body20 has expressly approved, or are purchased or leased exclusively from a single source designated by Body20, which may include Body20 itself or its affiliates.
This means that Body20 franchisees may be required to use specific merchant processing services if Body20 determines it is necessary to maintain brand standards, ensure quality, or streamline operations. This requirement will be outlined in the Body20 manuals.
Body20 and its affiliates may also derive revenue from these required purchases and leases made by franchisees, including through direct charges for products and services, promotional allowances, volume discounts, and other payments from designated or approved suppliers and distributors. Franchisees are obligated to report any revenue they receive from suppliers or distributors, which will then be included as part of their gross sales. This arrangement allows Body20 to potentially profit from franchisee purchases, while also giving them control over the quality and consistency of products and services used within the Body20 franchise system.