Risk Score
Pending analysis
Investment Range
$392,826 - $657,184
Franchise Fee
$45,000
Total US Locations
46
Business Summary
BODY20 Global USA, LLC offers and sells franchises for BODY20 fitness training studios. These studios provide full-body training exercises using advanced electro muscle stimulation (EMS) technology and equipment from retail locations, operating under designated trademarks and service marks.
Corporate History
BODY20 Global USA, LLC was formed as a Florida Limited Liability Company on January 3, 2017. The company began offering BODY20 Studio franchises on March 8, 2018, and started offering Area Representative Businesses on March 6, 2019. However, BODY20 Global USA, LLC is no longer offering Area Representative Business opportunities as of the FDD issuance date. The company focuses solely on the offer and sale of BODY20 Studio franchises, which provide full-body training exercises using electro muscle stimulation (EMS) technology.
Financial Overview
Investment Range
$392,826 - $657,184
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$65,000
Royalty %
7%
Equipment Costs (Low)
$256,377
Equipment Costs (High)
$403,966
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
BODY20 Global USA, LLC experienced a significant net loss of approximately $1.8 million in 2023, a decrease from a net income of about $564,000 in 2022. The company's members' equity also shifted to a deficit of approximately $199,000 by the end of 2023, compared to a positive equity of over $1.6 million in 2022. Furthermore, BODY20 Global USA, LLC utilized approximately $1.16 million in cash from its operating activities in 2023, contrasting with cash generated from operations in 2022. Despite these financial trends, the independent auditors issued an unqualified opinion on the financial statements, indicating fair presentation, and did not raise any substantial doubt about the company's ability to continue as a going concern.
Financing Details
BODY20 Global USA, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any loans, leases, or other financial obligations for franchisees. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
46
Franchised Units
45
Corporate Units
1
Avg Square Footage
1,300
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
BODY20 Global USA, LLC has a clean legal record with no litigation or legal disputes to report.
Bankruptcy History
BODY20 Global USA, LLC has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, BODY20 Studio franchisees must be in good standing, having satisfied all payment obligations to BODY20 Global USA, LLC and its suppliers throughout the initial term. They must provide written notice of their desire to renew at least six months before the current term expires and must have substantially complied with all obligations under the franchise agreement. Franchisees are required to make any necessary renovations and improvements to the studio to align with BODY20 Global USA, LLC's then-current system standards. Additionally, they must sign BODY20 Global USA, LLC's current form of Franchise Agreement, which may have different terms and potentially increased fees, and pay a renewal fee equal to the greater of $12,500 or 25% of the then-current initial franchise fee. Franchisees must also execute a general release of claims against BODY20 Global USA, LLC and its affiliates, and comply with current qualification and training requirements.
Training & Support Program
Franchisor Assistance
BODY20 Global USA, LLC provides several forms of assistance to its franchisees. Before a studio opens, it offers initial training at designated locations, reviews and approves proposed studio locations and leases, and provides standards and specifications for the studio's layout, design, appearance, and equipment. Franchisees also receive a copy of the confidential Operations Manual. For those with Area Development Agreements, BODY20 Global USA, LLC designates the development zones. On an ongoing basis, the company offers general advisory and field support as it deems necessary, provides updates and amendments to the Operations Manual, and conducts inspections and evaluations of studio operations and staff. Additionally, BODY20 Global USA, LLC may offer additional in-person or online training modules and resources, and may require franchisees or their employees to attend refresher training programs at the franchisee's expense.
Initial Training Hours
75
Training Location
Corporate headquarters, online through the franchise education portal, or other designated locations (including the franchisee's studio).
Ongoing Support
BODY20 Global USA, LLC provides ongoing support to its franchisees by offering general advisory assistance and field support as needed. This includes providing updates, revisions, and amendments to the Operations Manual. The company also conducts discretionary inspections of the franchised business, its operations, methods, and staff. Additionally, BODY20 Global USA, LLC may offer supplemental in-person or online training modules and educational resources, particularly if a new management staff member has not completed initial training or if additional training is deemed necessary. Franchisees are responsible for the costs associated with any required additional or refresher training programs.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
BODY20 territories are typically defined by either a radius of approximately two miles in less populated areas, or by encapsulating a realistic drive time that captures a desired total population and estimated average household income. The size of the BODY20 territory can vary based on the studio's location and surrounding demographics, and its boundaries may be described using zip codes, streets, natural or man-made landmarks, or by delineation on a map.
Staffing Notes
BODY20 franchisees must always maintain direct management control over all studio operations. The BODY20 Operating Principal, who must hold at least 5% ownership and devote full-time efforts to the business, is responsible for all operational decisions and must be approved by BODY20. The studio must be under the direct, on-site supervision of the Operating Principal or an approved manager. Both the Operating Principal and the approved manager must successfully complete BODY20's initial training program. All coaches must also complete a specific Trainer Program, including EMS training, and receive a Certification of Completion before training members. BODY20 may require additional or remedial training for staff, which the franchisee must cover the costs for. Employees, including managers, are required to sign confidentiality and non-compete agreements. During the pre-sale period, the BODY20 franchisee is expected to have a manager and four sales team members, all of whom must complete designated training. BODY20's system also outlines roles for a Studio Manager/Owner, Coach, Lead Coach, and Sales Associate.