Under the Body20 franchise agreement, who is included in 'you' for the purposes of arbitration?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT I TO THE FRANCHISE DISCLOSURE DOCUMENT
Additional State-Required Disclosures and Riders
ADDITIONAL DISCLOSURES FOR THE FRANCHISE DISCLOSURE DOCUMENT OF BODY20 FRANCHISOR LLC
The following are additional disclosures for the Franchise Disclosure Document of BODY20 Franchisor LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, AND WISCONSIN
The following provision applies only to franchisees and franchised Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and/or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
Based on the 2025 Body20 Franchise Disclosure Document, Exhibit I includes additional state-required disclosures. For franchisees and franchised studios subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, no statement, questionnaire, or acknowledgement signed by "you" in connection with the franchise can waive claims under state franchise law or disclaim reliance on statements made by Body20 or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
In essence, "you" refers to the franchisee and the franchised studio, ensuring that franchisees in the specified states retain their rights and protections under state franchise laws, particularly regarding claims of fraud or misrepresentation. This prevents Body20 from using standard contract language to circumvent these state laws.
For a prospective Body20 franchisee, this means that any agreements or acknowledgements signed during the franchise process cannot be used to waive their rights under applicable state franchise laws. This offers a degree of protection against potentially misleading statements or unfair practices by the franchisor, especially in states with strong franchise regulations. Franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations.