Under what conditions can Body20 terminate the Development Agreement if an Event of Default occurs?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Our Remedies After an Event of Default.
- (a) Right to Terminate. If an Event of Default occurs, we may, at our sole election and without notice or demand of any kind, declare this Agreement and any and all other rights granted under this Agreement to be immediately terminated and, except as otherwise provided herein, of no further force or effect. Upon termination, you will not be relieved of any of your obligations, debts, or liabilities under this Agreement, including without limitation any debts, obligations, or liabilities that you accrued prior to such termination.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 can terminate the Development Agreement if an Event of Default occurs. Specifically, Body20 has the sole election to declare the agreement and all rights granted to the franchisee immediately terminated without notice or demand. Upon termination, the franchisee will not be relieved of any obligations, debts, or liabilities under the agreement, including those accrued before the termination.
Events of Default include failing to execute the required number of Franchise Agreements by the Signing Deadline, failing to have the required number of Studios open and operating by the Opening Deadline, or breaching any Franchise Agreement or other agreement with Body20 or its affiliates. Additionally, breaching any provision of the Development Agreement, including non-compete covenants, also constitutes an Event of Default.
In the event of termination, Body20 retains the Development Fee, and the franchisee remains responsible for all outstanding debts and liabilities. However, in New York, the franchisee has the right to terminate the agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York. This is outlined in the Rider to the Body20 Franchisor LLC Development Agreement for use in the State of New York.