Under the Body20 Franchise Agreement, will I have an obligation to open any additional Studios?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
the elements of the System periodically.
You may purchase a Franchise to develop and operate one Studio at a mutually agreed upon site (the "Site") within an area ("Site Selection Area") that we will specify in the Franchise Agreement, which we and you will execute. Under the Franchise Agreement, you will have no obligation, nor any right, to open any additional Studios, nor will you have any right to (a) sublicense the Marks or the System to any other person or entity, (b) use the Marks or the System at any location other than the Site, or (c) use the Marks or the System in any wholesale, ecommerce, or other channel of distribution other than the operation of the Studio at the Site.
You must designate an Owner with at least a 10% ownership interest in your Entity as the "Operating Principal." The Operating Principal must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a manager to manage the day-to-day business of your Studio (the "Designated Manager"). Your Operating Principal may serve as your Designated Manager, unless we believe that he or she does not have sufficient experience or qualifications.
Studios are typically located in a metropolitan area or surrounding suburbs. Our current standard prototype Studio, developed in October 2024, is a one-story 650 to 1,000 square foot space. As of the date of this Disclosure Document, there are two Studios using this prototype under development.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, whether you are obligated to open additional studios depends on whether you sign a Development Agreement. If you only sign a Franchise Agreement, you are not obligated to open additional Body20 studios.
If you sign a Franchise Agreement with Body20, it allows you to develop and operate one studio at a specific site agreed upon by both you and Body20. The agreement specifies that you have neither the obligation nor the right to open any additional studios beyond this single location. Furthermore, you are restricted from sublicensing the Body20 marks or system to others, using them at any location other than the designated site, or using them in any wholesale, e-commerce, or other distribution channels outside of the studio's operation at the specified site.
However, Body20 does offer a Development Agreement for qualified franchisees who want to develop multiple studios within a designated territory. This agreement requires you to adhere to a predetermined development schedule, opening a specific number of studios within the agreed-upon area. Failure to meet this schedule can result in the termination of the Development Agreement, potentially leading to the loss of development rights and forfeiture of any unapplied development fees. It's important to note that even if the Development Agreement is terminated, the Franchise Agreements for any studios already opened will remain in effect.