Under what circumstances related to site ownership does Body20 have the option to purchase or lease the site from the franchisee party?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the option to purchase or lease the site from the franchisee party if the franchisee party owns the site. Additionally, if the site is leased from an unaffiliated lessor, the franchisee must, at Body20's option, cause the franchisee party to assign the lease to Body20 or enter into a sublease with Body20 on the same terms.

This clause gives Body20 significant control over the location of its franchises. If a franchisee owns the location, Body20 can decide to purchase it. If the location is leased, Body20 can force an assignment of the lease or a sublease. This could be triggered by various events, such as the termination of the franchise agreement, a transfer of ownership, or other circumstances where Body20 deems it necessary to control the site.

For a prospective franchisee, this means that even if you own or lease the physical location of your Body20 studio, Body20 has the right to take over that location under certain conditions. This could impact the franchisee's long-term investment and business strategy, as the franchisee might lose control of a valuable asset. It is important to understand the specific conditions under which Body20 might exercise these options and to negotiate terms that protect the franchisee's interests as much as possible.

Franchisees should seek legal counsel to fully understand the implications of this clause and to assess the potential risks and benefits associated with site ownership or leasing arrangements. Understanding these conditions is crucial for making an informed decision about investing in a Body20 franchise.