Can Body20 and its Affiliates derive revenue from franchisee purchases and leases?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS LEASE RIDER is entered into this day of, 20 by and between BODY20 Franchisor LLC ("Company"), ("Franchisee"), ("Landlord"). | and |
|---|---|
| WHEREAS, Company and Franchisee are parties to a Franchise Agreement dated | |
| (the "Franchise Agreement"); and | |
| WHEREAS, the Franchise Agreement provides that Franchisee will operate a BODY20® | |
| Studio ("Studio") at a location that Franchisee selects and Company accepts; and | |
| WHEREAS, Franchisee and Landlord propose to enter into the lease to which this Rider | |
| is attached (the "Lease"), pursuant to which Franchisee will occupy premises located at | |
| (the "Premises") for the purpose of constructing and operating the Studio in accordance with the |
APPENDIX C TO THE FRANCHISE AGREEMENT
BODY20 FRANCHISOR LLC PAYMENT AND PERFORMANCE GUARANTEE
In order to induce BODY20 Franchisor LLC ("Franchisor") to enter into a BODY20® Franchise Agreement (the "Franchise Agreement") by and between Franchisor and the Franchisee named in the Franchise Agreement dated __________ to which this Payment and Performance Guarantee (the "Guarantee") is attached ("Franchisee"), the undersigned (collectively referred to as the "Guarantors" and individually referred to as a "Guarantor") hereby covenant and agree as follows:
- **1.
Guarantee of Payment and Performance.** The Guarantors jointly and severally unconditionally guarantee to Franchisor and its Affiliates the payment and performance when due, whether by acceleration or otherwise, of all obligations, indebtedness, and liabilities of Franchisee to Franchisor, direct or indirect, absolute or contingent, of every kind and nature, whether now existing or incurred from time to time hereafter, whether incurred pursuant to the Franchise Agreement or otherwise, together with any extension, renewal, or modification thereof in whole or in part (the "Guaranteed Liabilities").
The Guarantors agree that if any of the Guaranteed Liabilities are not so paid or performed by Franchisee when due, the Guarantors will immediately do so.
The Guarantors further agree to pay all expenses (including reasonable attorneys' fees) paid or incurred in endeavoring to enforce this Guarantee or the payment of any Guaranteed Liabilities.
The Guarantors represent and agree that they have each reviewed a copy of the Franchise Agreement and have had the opportunity to consult with counsel to understand the meaning and import of the Franchise Agreement and this Guarantee.
- **2.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
Based on the 2025 Body20 Franchise Disclosure Document, Body20 has certain rights regarding the lease of the premises where a franchisee operates their studio. Specifically, Body20 requires a Lease Rider to be executed as a condition of authorizing a franchisee's lease. This Lease Rider gives Body20 the right to enter the premises to protect the Body20 system and marks, cure defaults, or remove distinctive elements of the trade dress upon termination of the franchise agreement.
Furthermore, Body20 has the option to have the franchisee assign the lease to Body20 or its designee upon the expiration or termination of the Franchise Agreement. If the lease is assigned to Body20, the assignee (Body20) must assume all obligations of the franchisee under the lease from the date of assignment but is not responsible for any prior defaults. The franchisee cannot assign the lease or sublet the premises without Body20's prior written consent.
Additionally, if Body20 does not exercise its right to operate the studio after the agreement expires or terminates, they may require the franchisee to continue operating the studio under the terms of the agreement until Body20 decides not to exercise its option or until the closing of Body20's purchase of the studio. During this period, Body20 also has the right to assume management of the studio themselves or appoint a third party, potentially an affiliate, to manage the studio.