Is it solely the Body20 franchisee's responsibility to select a suitable site for the Studio?
Body20 Franchise · 2025 FDDAnswer 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)
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, while Body20 provides assistance and guidance during the site selection process, the ultimate responsibility for selecting a suitable site for the Studio rests solely with the franchisee. Body20 designates a Site Selection Area and the franchisee identifies a site within that area. The franchisee must then submit a site proposal package to Body20 for review. Body20 uses its own criteria, potentially including third-party site selection software, to evaluate the proposed site. Factors considered include site visibility, zoning, parking, competition, neighboring tenants, accessibility, population density, and adjusted gross income.
Body20's acceptance of a site does not constitute a warranty or representation regarding the potential success or profitability of the Studio. Before making any binding commitments, such as signing a lease or purchase agreement, the franchisee must obtain Body20's written approval of the proposed agreement or any letter of intent. If the franchisee or an affiliate leases the site, they must arrange for the execution of a Lease Rider with the landlord, unless Body20 waives this requirement in writing.
This process highlights the importance of thorough due diligence on the part of the franchisee. While Body20 offers assistance, the franchisee bears the risk associated with the site's suitability and potential for success. Franchisees should carefully consider Body20's site selection criteria and conduct their own market research to ensure the chosen location aligns with their business goals. Additionally, franchisees should engage their own legal counsel to review any lease or purchase agreements, as Body20's review is solely for its own benefit.