What obligation does a Body20 franchisee have regarding site selection?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Site. Your franchise is for the specific Site that we approve. You must select a site that we have accepted within the non-exclusive Site Selection Area that we specify. Your Site Selection Area is not exclusive and is only intended to give you a general indication of the area within which you may locate the Site for the Studio. The site will be added to the Franchise Agreement once we accept it and you secure it.
Development Area. You may (if you qualify) develop and operate a number of Studios within a specific territory (the "Development Area"). We and you will identify the Development Area in the Development Agreement before signing it. The Development Area typically is a city, cities, counties, or specific zip codes and will be narratively described in, and pictorially identified on a map attached to, the Development Agreement. We base the Development Area's size primarily on the number of Studios that you commit to develop, demographics, distinct market areas within the Development Area, competitive businesses, and site availability. We will determine the number of Studios that you must develop, and the deadlines for development, to keep your development rights. We and you will complete the Development Schedule in the Development Agreement before signing it. Each site you propose for a Studio to be developed under the Development Agreement must be acceptable to us. After each proposed site is accepted and secured, we will determine the Territory for that Studio. Our then-current standards for sites and Territories will apply. We have the right to terminate the Development Agreement if you do not satisfy your development obligations.
Relocation of the Studio. If you would like to relocate your Studio, you must receive our written consent. Our approval will not be unreasonably withheld, provided (a) the new location for the Studio is satisfactory to us and complies with our then-current requirements, (b) your lease, if any, for the new location complies with our then-current requirements, and you and your landlord execute the Lease Rider, (c) you comply with our then-current requirements for constructing and furnishing the new location, (d) the new location will not, as determined in our sole discretion, materially and adversely affect the Gross Sales of any other Studio, (e) you have fully performed and complied with each provision of the Franchise Agreement within the last three years prior to, and as of, the date we consent to such relocation (the "Relocation Request Date"), (f) you are not in default, and no event exists, which, with the giving of notice and/or passage of time, would constitute a default, as of the Relocation Request Date, and (g) you have met all of our thencurrent training requirements. If you lose your lease, you must secure our approval of another site and enter into a lease for the new approved site within 90 days after you lose your site lease. You must pay us a relocation fee as specified in Item 6, whether or not your new proposed site is approved.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee must select a site that Body20 approves within a specified, non-exclusive Site Selection Area. This area is intended to provide a general indication of where the studio can be located. The specific site is added to the Franchise Agreement only after Body20 accepts it and the franchisee secures it.
For franchisees entering into a Development Agreement to open multiple Body20 studios, each proposed site must be acceptable to Body20. After the site is accepted and secured, Body20 determines the Territory for that studio, applying their then-current standards for sites and Territories. Body20 retains the right to terminate the Development Agreement if the franchisee fails to meet their development obligations.
If a Body20 franchisee wishes to relocate their studio, they must obtain written consent from Body20. Approval will not be unreasonably withheld if the new location meets Body20's current requirements, the lease complies with their requirements, the new location won't negatively impact other studios' sales, the franchisee has complied with the Franchise Agreement in the past three years, and the franchisee is not in default. If a franchisee loses their lease, they must secure Body20's approval of a new site and enter into a lease within 90 days. A relocation fee, as specified in Item 6, is payable regardless of whether the new site is approved.