factual

What is the process for Body20 to review a site identified by the franchisee?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

If you identify a site in the Site Selection Area that is reasonably suited for the conduct of the Studio and is consistent with any site selection guidelines that we may provide, before entering into any lease or purchase agreement for the site, you must submit a site proposal package describing details about the proposed site and provide any other information that we reasonably require. We will review each site that you identify and determine whether to accept it using our proprietary site selection assistance criteria, which may include evaluations of the proposed site by third-party site selection assistance software. We will conduct such on-site evaluation as we consider necessary and appropriate as part of our evaluation. We are not required to complete our review within a certain period of time. In addition to certain demographic characteristics, we also consider the following factors in accepting a Studio location: site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income. While we will provide assistance and guidance, it is solely your responsibility to select a suitable site for the Studio. Our acceptance of a proposed site is not a

warranty or representation of any kind as to the potential success or profitability of your Studio. (Franchise Agreement - Section 4.1)

  • **3.

Site Acquisition.** Before you make a binding commitment to purchase, lease, or sublease a site, we must approve in writing the proposed lease or purchase agreement or any letter of intent between you and the third-party seller or lessor.

If you or your affiliate leases the site, unless we waive the requirement in writing, you must arrange for the execution of the Lease Rider in the form that is attached as Appendix D to the Franchise Agreement (the Franchise Agreement is attached as Exhibit A of this Disclosure Document) by you and your landlord .

Our review of the Site lease or sublease (the "Site Lease") is for our own benefit only and is not intended to supplement or replace a review by your attorney.

We may require you to engage an attorney to review your Site Lease or purchase agreement for the Site that we have accepted and to supply us with reasonable documentation relating to that review, including a lease abstract and confirmation that the terms in the agreement reflect the terms in any letter of intent between you and the third-party seller or lessor.

You must secure a site that we have accepted by signing a Site Lease or purchase agreement within 90 days after the effective date of your Franchise Agreement (the "Site Acquisition Deadline").

We may extend the Site Acquisition Deadline by up to 90 days in our sole discretion, and we may require you to execute a general release as a condition of our agreeing to grant such extension.

If we have accepted a site for your Studio, and you are unable or unwilling to acquire such site or an alternative site that we accept by the Site Acquisition Deadline, we may terminate the Franchise Agreement. (Franchise Agreement – Section 4.3)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–49)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, if a franchisee identifies a site within their designated Site Selection Area that is suitable for a Body20 studio, they must submit a site proposal package to Body20 before entering into any lease or purchase agreement. This package should include details about the proposed site and any other information Body20 reasonably requires. Body20 will then review the site using its proprietary site selection assistance criteria, which may include evaluations using third-party site selection assistance software. As part of this evaluation, Body20 may conduct an on-site evaluation as they deem necessary.

Body20 does not commit to a specific timeframe for completing the site review. In addition to demographic characteristics, Body20 considers factors such as site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income when evaluating a location. While Body20 offers assistance and guidance, the franchisee is ultimately responsible for selecting a suitable site. Body20's acceptance of a site does not constitute a warranty or representation regarding the potential success or profitability of the studio.

Before a franchisee makes a binding commitment to purchase, lease, or sublease a site, Body20 must provide written approval of the proposed lease or purchase agreement, or any letter of intent between the franchisee and the third-party seller or lessor. If the franchisee or an affiliate leases the site, they must arrange for the execution of a Lease Rider, in the form attached as Appendix D to the Franchise Agreement, by both the franchisee and the landlord, unless Body20 waives this requirement in writing. The review of the Site Lease by Body20 is solely for their benefit and does not replace a review by the franchisee's attorney. Body20 may require the franchisee to engage an attorney to review the Site Lease or purchase agreement and provide documentation of that review, including a lease abstract and confirmation that the terms reflect any letter of intent.

The franchisee must secure a site that Body20 has accepted by signing a Site Lease or purchase agreement within 90 days after the effective date of the Franchise Agreement, referred to as the Site Acquisition Deadline. Body20 may extend this deadline by up to 90 days at their discretion, potentially requiring the franchisee to execute a general release as a condition of the extension. If Body20 has accepted a site, but the franchisee is unable or unwilling to acquire that site or an alternative site accepted by Body20 by the Site Acquisition Deadline, Body20 may terminate the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.