Before a Body20 franchisee makes a binding commitment to purchase or lease a site, what approval is required from the franchisor?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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, before a franchisee makes a binding commitment to purchase, lease, or sublease a site, Body20 must provide written approval of the proposed lease or purchase agreement, including any letter of intent between the franchisee and the third-party seller or lessor. Additionally, if the franchisee or an affiliate leases the site, they must arrange for the execution of a Lease Rider, using the form attached as Appendix D to the Franchise Agreement, by both the franchisee and their landlord, unless Body20 waives this requirement in writing. This process is part of Body20's pre-opening obligations to assist franchisees in site selection and acquisition.
This requirement ensures that Body20 has control over the locations of its franchises, maintaining brand consistency and strategic market placement. By reviewing the lease or purchase agreement, Body20 can assess whether the terms are favorable and align with their standards. The Lease Rider provides an additional layer of protection, ensuring that the lease agreement includes necessary provisions that benefit both the franchisee and Body20.
However, the FDD also states that Body20's review of the Site Lease is solely for their own benefit and does not replace the need for the franchisee to have their attorney review the agreement. Body20 may also require the franchisee to engage an attorney to review the Site Lease or purchase agreement and provide documentation, such as a lease abstract, confirming that the terms reflect any letter of intent. This highlights the importance of franchisees conducting their own due diligence and seeking independent legal advice.
Overall, while Body20 provides assistance in site selection and requires approval of lease or purchase agreements, the ultimate responsibility for selecting a suitable site and ensuring favorable lease terms rests with the franchisee. Franchisees should carefully review all agreements and consult with legal and real estate professionals to protect their interests.