factual

What area will Body20 designate for the franchisee's studio?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

For all Franchise Agreements, whether executed pursuant to a Development Agreement or otherwise, before you begin operating your Studio:

  • 1. Designate Areas. We will designate your Site Selection Area. (Franchise Agreement - Section 1.1)
  • 2. Site Selection. If you identify a site in the Site Selection Area that is reasonably suited for the conduct of the Studio and is consistent with any site selection guidelines that we may provide, before entering into any lease or purchase agreement for the site, you must submit a site proposal package describing details about the proposed site and provide any other information that we reasonably require. We will review each site that you identify and determine whether to accept it using our proprietary site selection assistance criteria, which may include evaluations of the proposed site by third-party site selection assistance software. We will conduct such on-site evaluation as we consider necessary and appropriate as part of our evaluation. We are not required to complete our review within a certain period of time. In addition to certain demographic characteristics, we also consider the following factors in accepting a Studio location: site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income. While we will provide assistance and guidance, it is solely your responsibility to select a suitable site for the Studio. Our acceptance of a proposed site is not a

warranty or representation of any kind as to the potential success or profitability of your Studio. (Franchise Agreement - Section 4.1)

  • **3.

Site Acquisition.** Before you make a binding commitment to purchase, lease, or sublease a site, we must approve in writing the proposed lease or purchase agreement or any letter of intent between you and the third-party seller or lessor.

If you or your affiliate leases the site, unless we waive the requirement in writing, you must arrange for the execution of the Lease Rider in the form that is attached as Appendix D to the Franchise Agreement (the Franchise Agreement is attached as Exhibit A of this Disclosure Document) by you and your landlord .

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, Body20 will designate a Site Selection Area for the franchisee. The franchisee is then responsible for identifying a site within that designated area that is suitable for operating a Body20 studio.

Before the franchisee can commit to any lease or purchase agreement, they must submit a site proposal package to Body20. This package should include details about the proposed site and any other information Body20 reasonably requires. Body20 will then review the proposed site based on their proprietary site selection criteria, which may involve evaluations using third-party site selection software and on-site evaluations.

Body20 considers several factors when evaluating a potential studio location, including site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income, in addition to certain demographic characteristics. However, the FDD states that the franchisee is ultimately responsible for selecting a suitable site, and Body20's acceptance of a site does not guarantee the studio's success or profitability.

Before making any binding commitments to purchase, lease, or sublease a site, the franchisee must obtain written approval from Body20 for the proposed lease or purchase agreement, including any letter of intent. If the franchisee or an affiliate leases the site, they must arrange for the execution of a Lease Rider, included as Appendix D in the Franchise Agreement, by both the franchisee and the landlord, unless Body20 waives this requirement in writing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.