If Body20 chooses to sublease the site, does it have the right to sublease the site to another party?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Franchisee Party owns the Site, we may elect to include a fee simple interest in the Site as part of the Purchased Assets or, at our option, lease the Site from the Franchisee Party (or an Entity controlled by your Owner) for an initial ten-year term with one renewal term of five years (at our option) on commercially reasonable terms, which shall include the right to sublease the Site to another party.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee party owns the site, Body20 has the option to lease the site from the franchisee party (or an entity controlled by the owner) for an initial ten-year term with one renewal term of five years (at Body20's option) on commercially reasonable terms, which includes the right to sublease the site to another party.
This means that if Body20 chooses to lease the site from the franchisee, it retains the right to sublease the property to a third party. This provision provides Body20 with flexibility in managing the location, especially if the franchisee's business ceases operation or if Body20 decides to take over the location.
For a prospective franchisee, this clause highlights the importance of understanding the terms of the site lease and the potential for Body20 to control the site in the future. Franchisees should carefully consider the implications of this clause and discuss it with Body20 during their due diligence to fully understand their rights and obligations regarding the site.