Under the Body20 franchise agreement, where can I find the Payment and Performance Guarantee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Owner | Owner Address | Ownership Interest |
|---|---|---|
| Sample: | ||
| ABC Corporation | 1 Main Street, Anytown, CA | 100% interest in Franchisee |
| - John Smith | 1 Elm Street, Anytown, CA | 25% interest in ABC |
| - Jane Smith | 1 Elm Street, Anytown, CA | 25% interest in ABC |
| - XYZ, Inc. | 10 Oak Street, Anytown, CA | 50% interest in ABC |
| -- Joe Doe | 10 Oak Street, Anytown, CA | 100% interest in XYZ |
| 17.6 | Severability | 46 |
| 17.7 | Applicable Law Controlling | |
| 17.8 | Survival | 46 |
| 17.9 | Consent | 46 |
| 17.10 | Independent Contractor Relationship | 46 |
| 17.11 | Notices | 47 |
| 17.12 | Non-Disparagement | 47 |
| 17.13 | Execution Successors and Assigns No Third-Party Beneficiaries Delegation No Liability | 47 |
| 17.18 | Exercise of Our Business Judgment | 48 |
| 17.19 | Additional Terms; Inconsistent Terms | 48 |
| SECTION 18 | YOUR REPRESENTATIONS AND ACKNOWLEDGMENTS | 48 |
| 18.1 | Truth of In |
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the Payment and Performance Guarantee is included as Appendix C to the Franchise Agreement. This guarantee is a legally binding document that ensures certain parties will cover the franchisee's financial and performance obligations to Body20.
Specifically, if the franchisee is an entity (like a corporation or LLC), the owners and their spouses must sign the Payment and Performance Guarantee. This means that these individuals are personally guaranteeing the franchisee's obligations under the Franchise Agreement. The current form of the Franchise Agreement, including the Payment and Performance Guarantee, is attached to the Disclosure Document as Exhibit A.
This requirement is fairly standard in franchising, especially when the franchisee is a business entity. Franchisors like Body20 want to ensure that there are individuals with personal assets on the hook, not just a potentially underfunded company. Prospective Body20 franchisees should carefully review the Payment and Performance Guarantee with their legal counsel to fully understand the obligations they are undertaking.