Does Body20's review of the Site Lease supplement or replace a review by the franchisee's attorney?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Our review of 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 in connection with such 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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20's review of the Site Lease is strictly for their own benefit and does not substitute a legal review by the franchisee's attorney. Body20 maintains the right to approve the proposed lease or purchase agreement in writing. Unless Body20 waives this requirement in writing, the franchisee must ensure that the Lease Rider, in the form of Appendix D, is executed by both the franchisee and the landlord in connection with any lease or sublease for the site.
Body20 may also require the franchisee to hire an attorney to review the Site Lease or purchase agreement for the accepted site. The franchisee must then provide Body20 with documentation related to this review, including a lease abstract and confirmation that the terms in the agreement reflect those in any letter of intent between the franchisee and the third-party seller or lessor. This ensures that Body20 has additional security that the franchisee is entering into a lease that will not negatively impact the Body20 franchise.
This requirement underscores the importance of franchisees conducting their own due diligence with the help of qualified legal counsel, as Body20’s review serves a different purpose. Franchisees should not rely solely on Body20’s assessment but should ensure they fully understand the terms and conditions of the lease and how they might affect their business. This is a fairly standard practice in franchising, as the franchisor wants to ensure the franchisee has a viable location, but the franchisee is ultimately responsible for understanding the lease agreement.