If Body20 assigns its rights to purchase the studio assets, does the assignee have the same rights and obligations?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We may assign our rights under this Section 15.7 (Our Right to Purchase Studio Assets) to any individual or Entity (who may be our Affiliate), and that person or Entity will have all of the rights and obligations under this Section 15.7.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to assign its rights to purchase studio assets to another individual or entity. If Body20 does assign these rights, the assignee will assume all of Body20's rights and obligations regarding the purchase of the studio assets.
This means that the entity Body20 assigns the rights to can exercise the option to purchase the franchise's assets upon termination or expiration of the franchise agreement. The assignee would also be subject to the same obligations Body20 has, such as providing notice of intent to conduct due diligence.
For a prospective Body20 franchisee, this clause indicates that Body20 could transfer its right to purchase the studio's assets to a third party. This third party would then be the entity the franchisee would deal with regarding the sale of their assets should Body20 choose to assign its rights. Franchisees should be aware that this could impact the terms or process of the asset purchase, depending on the assignee.