What instruments must the Body20 franchisee deliver to the franchisor at the closing of the asset purchase?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;
NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
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- During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Studio and for no other purpose.
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- Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the BODY20® system as Company may from time to time prescribe for the Studio.
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- Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
BODY20 Franchisor LLC Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com
Franchise Agreement; and
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
Based on the 2025 Body20 Franchise Disclosure Document, as a condition of Body20 authorizing a franchisee to enter into a lease, the franchisee must execute a Lease Rider. This Lease Rider outlines the terms and conditions related to the franchisee's use of the premises for operating the Body20 studio. The Lease Rider ensures that the franchisee adheres to Body20's standards and requirements for the studio's operation.
The Lease Rider also addresses the landlord's role, requiring them to provide Body20 with copies of all letters and notices sent to the franchisee regarding the lease and premises. This provision ensures that Body20 remains informed about communications between the landlord and franchisee, allowing them to address any potential issues or concerns promptly. The Lease Rider specifies that notices to Body20 should be sent to Trevor Lucas, Chief Financial Officer, at the company's Newport Beach address, including his email.
Overall, the Lease Rider serves as a critical document that protects Body20's interests and ensures consistent brand standards across all franchise locations. It establishes clear guidelines for the franchisee's use of the premises, the landlord's responsibilities, and Body20's rights and obligations related to the lease agreement. Franchisees should carefully review the Lease Rider and understand its implications before signing the Franchise Agreement and entering into a lease for their Body20 studio.