Under the Body20 franchise agreement, what is waived regarding legal proceedings?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
4. MUTUAL WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES. The following is added to the end of Sections 16.4 and 16.5 of the Franchise Agreement:
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
- WAIVER OF JURY TRIAL. If, and then only to the extent, required by the North Dakota Franchise Investment Law, Section 16.4 of the Franchise Agreement is deleted.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the franchise agreement includes a mutual waiver of jury trial and punitive damages. Specifically, Body20 and the franchisee agree to waive their rights to a jury trial and punitive damages in legal disputes. However, this waiver does not apply in a way that would violate the Illinois Franchise Disclosure Act.
For franchisees in North Dakota, the waiver of jury trial in Section 16.4 of the Franchise Agreement is deleted if required by the North Dakota Franchise Investment Law. This means that franchisees in North Dakota may retain their right to a jury trial, depending on the specific requirements of North Dakota law.
It is important for prospective Body20 franchisees to understand these waivers and their implications. Waiving the right to a jury trial means that any disputes will be resolved by a judge rather than a jury. Waiving the right to punitive damages could limit the potential financial recovery in a lawsuit against Body20. Franchisees should consult with an attorney to fully understand the legal ramifications of these waivers and how they apply in their specific state.