Does Body20 guarantee the suitability of a site, even after accepting it?
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 offers site selection assistance, their acceptance of a site does not constitute a guarantee of success or profitability for the franchisee's studio. It is the franchisee's responsibility to select a suitable site. Body20 will designate a Site Selection Area and review sites identified by the franchisee, using their own criteria and possibly third-party software. Factors considered include site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income.
Before a franchisee makes a binding commitment to purchase or lease a site, Body20 must approve the proposed lease or purchase agreement in writing. Additionally, Body20 may require the franchisee to engage an attorney to review the Site Lease or purchase agreement and provide documentation of that review. The review of the Site Lease by Body20 is for their own benefit and does not replace the need for the franchisee's attorney to conduct a review.
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, although Body20 can extend this deadline by up to 90 days. If the franchisee fails to acquire an accepted site within the specified timeframe, Body20 has the right to terminate the Franchise Agreement.
In practice, this means that while Body20 provides assistance in site selection, the franchisee bears the ultimate responsibility and risk. The franchisee should conduct thorough due diligence and not rely solely on Body20's approval when choosing a location. The franchisee should also seek independent legal and business advice to evaluate the suitability of the site and the terms of the lease or purchase agreement.