Does Body20 waiving rights by accepting increased Royalty Fees during the Interim Period?

According to Body20's 2025 Franchise Disclosure Document, Body20 does not waive its rights and remedies under the Franchise Agreement, including the right to terminate the agreement, by accepting increased royalty fees during the Interim Period.

The Interim Period occurs if the franchisee continues to operate the studio after the expiration of the original agreement but has not yet entered into a Successor Term agreement. During this time, Body20 has the option to treat the agreement as either expired or continued on a month-to-month basis. Beginning on the 30th day of the Interim Period, the monthly Royalty Fee increases to 10% of the studio's Gross Sales during each week that the franchisee fails to enter into a Successor Term.

This clause protects Body20 by ensuring that they can still enforce the original agreement's terms and terminate the agreement if necessary, even while accepting the higher royalty payments during the Interim Period. For a prospective franchisee, this means that simply paying the increased royalty fee does not guarantee the continuation of the franchise relationship or prevent Body20 from exercising its other rights.