Under the Body20 Development Agreement, in what section can information about termination with cause be found?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| f. | Termination by us with cause | Section 6.1 | We have the right to terminate Development Agreement if you commit one of several violations. |
| h. | "Cause" defined – non curable defaults | Section 6.1 | Non-curable defaults include you (or your Affiliated Entities) fail to timely execute a Franchise Agreement; you (or your Affiliated Entities) fail to have open and operating the required number of Studios specified in the Development Schedule at any deadline; you, your Owners, or your affiliates breach or commit a default under any Franchise Agreement or other agreement with us or our affiliates, and we or our affiliates terminate that agreement or have the right to terminate that agreement, even if we do not exercise that right; or you, your Owners, or your affiliates breach or otherwise fail to comply with any other provision in the Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, information regarding the franchisor's right to terminate the Development Agreement with cause can be found in Section 6.1 of the Development Agreement. This section outlines the violations that could lead to termination.
Specifically, Section 6.1 details that Body20 has the right to terminate the Development Agreement if the franchisee commits certain violations. Further clarification on non-curable defaults, which also fall under termination with cause, can also be found in Section 6.1. These non-curable defaults include failing to execute a Franchise Agreement in a timely manner, not opening the required number of studios by the deadlines specified in the Development Schedule, or breaching any agreement with Body20 or its affiliates.
It is important for a prospective Body20 franchisee to carefully review Section 6.1 of the Development Agreement to understand the specific actions or omissions that could result in the termination of their Development Agreement. Understanding these terms is crucial for maintaining a successful and compliant franchise operation with Body20.