If a Franchisee Party owns the site of the Body20 studio, what options does Body20 have regarding the site?
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. You and your Owners agree to cause your Affiliate or any Entity controlled by such Owner to comply with these requirements. If a Franchisee Party leases the Site from an unaffiliated lessor, you agree (at our option) to cause the Franchisee Party to assign the Site Lease to us or to enter into a sublease for the remainder of the Site Lease term on the same terms (including renewal options) as the Lease.
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 of the Body20 studio, Body20 has specific options regarding the site. Body20 may choose to include a fee simple interest in the site as part of the purchased assets. Alternatively, Body20 can choose to lease the site from the Franchisee Party (or an entity controlled by the owner).
If Body20 elects to lease the site, the initial term will be for ten years, with an option for Body20 to renew for one additional term of five years. The lease terms must be commercially reasonable, which includes Body20's right to sublease the site to another party. The franchisee and their owners must ensure that their affiliates or any entity controlled by the owner comply with these requirements.
If the Franchisee Party leases the site from an unaffiliated lessor, the franchisee must, at Body20's option, either assign the site lease to Body20 or enter into a sublease with Body20 for the remainder of the site lease term. The sublease would be on the same terms as the original lease, including any renewal options.