What must a Body20 franchisee comply with regarding site selection for the initial studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
your business activities under this Agreement. In addition, as part of the Royalty Fee, Brand Fund Fee, Training Fee, Technology Fee, or any other fees that we charge, you will pay to us the amount of any taxes imposed on us
or our Affiliates (and any taxes imposed on us or our Affiliates as a result of such imposition) by federal, state, or local taxing authorities as a result of our receipt of any such fees, not including any tax measured on our income.
Section 4 Site Selection, Development, and Opening of Studio
- 4.1 Site Selection. If you identify a site in the Site Selection Area on your own 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 we, our designated broker, or you identify and determine whether to accept it using our proprietary site selection assistance criteria. You acknowledge that we may refuse to accept a proposed site for any reason. If we accept the proposed site and you obtain it, we will insert a description of the specific location on Schedule 1 to Appendix A. YOU ACKNOWLEDGE AND AGREE THAT OUR ACCEPTANCE OR PROPOSAL OF A PROPOSED SITE IS NOT A WARRANTY OR REPRESENTATION OF ANY KIND AS TO THE POTENTIAL SUCCESS OR PROFITABILITY OF YOUR STUDIO. WHILE WE MAY PROVIDE ASSISTANCE AND GUIDANCE, IT IS SOLELY YOUR RESPONSIBILITY TO SELECT A SUITABLE SITE FOR THE STUDIO. The address listed on Schedule 1, if completed and signed by us, will be the "Site" referred to in this Agreement. A site is not accepted until you have received our acceptance in writing, as indicated by our delivery of the completed and signed Schedule 1.
- 4.2 Definition of the Territory. Once the Site has been accepted, we will identify your Territory in Schedule 1 to Appendix A based on the factors that we deem relevant, in our sole discretion, which might include demographics, the character and location of the Site, and nearby businesses and residences. Once we have defined the Territory, you will have no territorial or other rights in those portions of the Site Selection Area that are outside the Territory. You must return to us upon our request a signed copy of Schedule 1 to Appendix A acknowledging the Territory we have designated.
- 4.3 Site Acquisition. Before you or an Affiliate make a binding commitment to purchase, lease, or sublease a site, we must accept the location in writing and 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 of Appendix D (the "Lease Rider") by you and your landlord in connection with any lease or sublease for your Site ("Site Lease") and any other provisions that we may reasonably require. Our review of the Site Lease is for our own benefit only and is not intended to supplement or replace a review by your attorney. We may require you to engage an attorney to review your Site Lease or purchase agreement for the Site that we have accepted and to supply us with reasonable documentation in connection with such review, including a lease abstract and confirmation that the terms in the agreement reflect the terms in any letter of intent between you and the third-party seller or lessor.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee who independently identifies a potential site must submit a site proposal package with details about the location. This package must include any other information Body20 reasonably requires. Body20 will then review the proposed site using its proprietary site selection assistance criteria and has the right to refuse any site for any reason. The franchisor's acceptance of a site does not provide any warranty regarding the potential success or profitability of the Body20 studio. The franchisee is ultimately responsible for selecting a suitable site. A site is only accepted once the franchisee receives written acceptance from Body20, indicated by their delivery of the completed and signed Schedule 1.
Once Body20 accepts the site, they will define the territory in Schedule 1 to Appendix A, considering factors like demographics, the site's character and location, and nearby businesses and residences. The franchisee will not have any territorial rights outside the defined territory within the Site Selection Area. The franchisee must return a signed copy of Schedule 1 to acknowledge the designated territory.
Before making any binding commitments to purchase, lease, or sublease a site, the franchisee must receive Body20's written acceptance of the location and written approval of the proposed lease or purchase agreement, including any letters of intent. This ensures Body20 maintains control over site selection and that the franchisee complies with their standards.
Body20 also provides prototype plans and specifications for the studio's design and layout. The franchisee must engage professionals to adapt these plans to the specific site. Body20 will review and must approve the architectural drawings and specifications before submission for permitting. The franchisee cannot modify the plans after final acceptance without Body20's written consent. Body20 has the right to approve the project managers, architects, engineers, or designers that the franchisee intends to use.