Under what conditions might Body20 require me to pay an Opening Deadline Extension Fee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
aining. If we, at your request, provide Coach Onboarding at your Studio, your costs may be higher.
Opening Deadline Extension Fee. Under the Franchise Agreement, we may, in our sole discretion, extend the date by which you must open the Studio (i.e., no later than 270 days after the effective date of the Franchise Agreement) (the "Opening Deadline"), which we may condition on your paying us an extension fee of $2,500 for each Studio for each month (or portion of a month) for which the Opening Deadline is extended and your executing a general release. Under the Development Agreement, we also may extend any Signing Deadline
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 may require franchisees to pay an Opening Deadline Extension Fee under specific circumstances related to the timeline for opening their studio. The standard Franchise Agreement stipulates that a franchisee must open their Body20 studio no later than 270 days after the agreement's effective date, which is referred to as the "Opening Deadline."
Body20 retains the discretion to extend this Opening Deadline. However, this extension is not automatic or guaranteed. Body20 may condition the extension on two specific requirements. First, the franchisee must pay an extension fee of $2,500 for each studio for each month (or portion thereof) that the Opening Deadline is extended. Second, the franchisee must execute a general release, which likely protects Body20 from future claims related to the delay.
This extension policy also applies to Development Agreements, which are used when a franchisee commits to opening multiple Body20 studios. Under a Development Agreement, Body20 may extend any Signing Deadline or Opening Deadline as stated in the Development Schedule, subject to the same conditions: payment of the extension fee and execution of a general release. This policy ensures that Body20 is compensated for any potential disruption or delay in the franchisee's opening schedule and that the company is protected from legal liabilities associated with the extension.