What must a Body20 franchisee do before entering into any lease or purchase agreement for a site they identify?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 first submit a site proposal package with details about the site and any other information Body20 reasonably requires. Before the franchisee or an affiliate makes a binding commitment to purchase, lease, or sublease a site, Body20 must accept the location in writing and approve the proposed lease or purchase agreement, including any letter of intent. This process ensures that the site aligns with Body20's criteria and standards.
If the franchisee or their affiliate leases the site, they must arrange for the execution of the Lease Rider, in the form of Appendix D, by both the franchisee and the landlord, unless Body20 waives this requirement in writing. This Lease Rider is connected to any lease or sublease for the site and includes any other provisions Body20 may reasonably require. Body20's review of the Site Lease is solely for their benefit and does not replace the need for the franchisee's attorney to review the lease.
Furthermore, Body20 may require the franchisee to engage an attorney to review the Site Lease or purchase agreement for the accepted site. The franchisee must provide Body20 with reasonable documentation related to this review, including a lease abstract and confirmation that the agreement terms reflect the terms in any letter of intent between the franchisee and the third-party seller or lessor. These steps are in place to protect Body20's interests and ensure the franchisee secures a suitable location under favorable terms.