Is the franchisee solely responsible for selecting a suitable site for the Body20 studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
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, while Body20 provides assistance and guidance during the site selection process, the franchisee is ultimately responsible for selecting a suitable site for the studio. Body20 will designate a Site Selection Area for the franchisee. The franchisee must submit a site proposal package with details about the proposed site. Body20 will then review the site and determine whether to accept it based on their criteria, which may include evaluations using third-party site selection software and on-site evaluations. Factors considered include site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income.
Body20's acceptance of a proposed site does not constitute a warranty or representation regarding the potential success or profitability of the studio. Before making any binding commitments, such as purchasing, leasing, or subleasing a site, the franchisee must obtain written approval from Body20 for the proposed lease or purchase agreement, including any letters of intent. If the franchisee or an affiliate leases the site, they must arrange for the execution of a Lease Rider, unless Body20 waives this requirement in writing.
The review of the Site Lease by Body20 is solely for their benefit and does not replace the need for the franchisee to have their attorney review the lease. Body20 may require the franchisee to engage an attorney for this review and provide documentation, such as a lease abstract. The franchisee must secure an accepted site by signing a Site Lease or purchase agreement within 90 days after the Franchise Agreement's effective date, referred to as the Site Acquisition Deadline. Body20 may extend this deadline by up to 90 days at their discretion, potentially requiring the franchisee to execute a general release as a condition for the extension. Failure to acquire an accepted site by the Site Acquisition Deadline may result in the termination of the Franchise Agreement.
This process is typical in franchising, where the franchisor provides guidance but the franchisee bears the ultimate responsibility for site selection and related costs. The franchisee needs to carefully evaluate potential locations, considering Body20's criteria and their own market research, to ensure the site's suitability for a successful Body20 studio. It is also important to adhere to the deadlines for site acquisition to avoid potential termination of the franchise agreement.