Under the Body20 Franchise Agreement, will I have the right 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.
Development Program. In addition, for qualified franchisees who desire the right to develop multiple Studios within a designated territory (the "Development Area") that meet certain conditions, we also offer the opportunity to enter into a Development Agreement with us (the "Development Agreement") to develop a specific number of Studios according to a predetermined, mandatory development schedule specified in the Development Agreement (the "Development Schedule"). Those franchisees may open and operate their Studios directly or through "Affiliated Entities," which are entities in which you own at least 51% of the direct ownership interests, that conduct no business other than the operation of one or more Studios, and that meet, and all of whose owners meet, our then-current criteria for franchisees and franchisee owners. Our current form of Development Agreement is included as Exhibit B to this Disclosure Document. If you sign a Development Agreement, you (or your Affiliated Entity) will sign a Franchise Agreement for your first Studio at the same time.
Franchisees signing the Development Agreement (or their Affiliated Entities) must sign our then-current form of Franchise Agreement for each Studio. While that form may include terms that are different from the form of Franchise Agreement included as Exhibit A to this Disclosure Document, the amount of the initial franchise fee for each Studio that you commit to developing under the Development Agreement will be the amount stated in the Development Agreement.
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, franchisees typically do not have the right or obligation to open additional studios under the standard Franchise Agreement. The Franchise Agreement allows you to develop and operate one Body20 studio at a specific site within a designated area.
However, Body20 offers a Development Agreement for qualified franchisees who want to develop multiple studios within a designated territory. To qualify, franchisees must meet certain conditions and adhere to a predetermined, mandatory development schedule. Franchisees can operate these studios directly or through Affiliated Entities, where the franchisee owns at least 51% of the direct ownership interests.
If a franchisee signs a Development Agreement, they must also sign a Franchise Agreement for their first studio. Failing to open and operate the required number of studios in the Development Area can lead to termination of the Development Agreement, resulting in the loss of development rights and forfeiture of any unapplied development fees. However, existing Franchise Agreements for already opened studios will not be terminated solely due to the termination of the Development Agreement.