Is Body20 liable under the lease before the lease is assigned to and assumed by Body20?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Landlord acknowledges that Company is not a party to the Lease and will have no liability or responsibility under the Lease unless and until the Lease is assigned to, and assumed by, Company.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 Franchisor LLC is not liable or responsible under the lease agreement until the lease is officially assigned to and assumed by them. This is explicitly stated in the lease rider, which outlines the relationship between Body20, the franchisee, and the landlord. The lease rider is an agreement that supplements the lease between the franchisee and the landlord.
This provision protects Body20 from being held accountable for any lease obligations before they take over the lease, which typically happens if the franchisee defaults or the franchise agreement is terminated. It clarifies that Body20's involvement is contingent upon a formal assignment and assumption of the lease, ensuring they are not automatically responsible for the franchisee's lease-related actions or debts.
For a prospective Body20 franchisee, this means that Body20's financial responsibility for the studio's location only begins if and when the lease is transferred to them. Prior to that, the franchisee is solely responsible for all lease obligations. This arrangement is fairly standard in franchising, as it keeps the franchisor's liability separate from the franchisee's day-to-day operations and financial commitments.