Under what conditions can a Body20 franchisee lease or sublease the studio site?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
we deem relevant, in our sole discretion, which might include demographics, the character and location of the Site, and nearby businesses and residences. Once we have defined the Territory, you will have no territorial or other rights in those portions of the Site Selection Area that are outside the Territory. You must return to us upon our request a signed copy of Schedule 1 to Appendix A acknowledging the Territory we have designated.
- 4.3 Site Acquisition. Before you or an Affiliate make a binding commitment to purchase, lease, or sublease a site, we must accept the location in writing and 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 of Appendix D (the "Lease Rider") by you and your landlord in connection with any lease or sublease for your Site ("Site Lease") and any other provisions that we may reasonably require. 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. You must secure a Site that we have approved by signing a Site Lease or purchase agreement within 90 days after the Effective Date (the "Site Acquisition Deadline"). We may extend the Site Acquisition Deadline by 90 days in our sole discretion, and we may require you to execute a general release as a condition of us 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. You must deliver to us the completely executed purchase agreement or Site Lease and Lease Rider within 10 days after execution of the Site Lease or purchase agreement, and you may not amend or
renew any Site Lease without our written consent. You must comply with the terms and conditions of your Site Lease. We are not obligated to execute your lease or guarantee a lease for you.
4.4 Site Construction.
- (a) Plans.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, before a franchisee or their affiliate makes a binding commitment to purchase, lease, or sublease a site, Body20 must provide written acceptance of the location and written approval of the proposed lease or purchase agreement, including any letter of intent with the third-party seller or lessor. If the franchisee or their affiliate leases the site, they must arrange for the execution of the Lease Rider, included as Appendix D in the FDD, by both the franchisee and the landlord. This requirement can only be waived in writing by Body20.
Body20's review of the Site Lease is solely for their own benefit and does not replace the need for the franchisee's attorney to review the lease. Body20 may require the franchisee to engage an attorney to review the Site Lease or purchase agreement and provide documentation, such as a lease abstract, confirming that the agreement terms reflect the terms in any letter of intent. The franchisee must secure an approved site by signing a Site Lease or purchase agreement within 90 days after the Effective Date, although Body20 may extend this deadline by an additional 90 days, potentially requiring a general release as a condition for the extension.
The franchisee must deliver the fully executed purchase agreement or Site Lease and Lease Rider to Body20 within 10 days after execution and cannot amend or renew any Site Lease without Body20's written consent. The franchisee is obligated to comply with the terms and conditions of their Site Lease, and Body20 is not obligated to execute the lease or guarantee it for the franchisee. Furthermore, the franchisee cannot assign the Lease or sublet the Premises without Body20's prior written consent, and the landlord must verify that Body20 has given its written consent before consenting to any assignment or subletting by the franchisee.
In summary, a Body20 franchisee's ability to lease or sublease a studio site is contingent upon receiving Body20's written approval of the site and lease terms, executing the Lease Rider, and adhering to specific timelines for site acquisition and document submission. The franchisee must also obtain Body20's written consent for any lease assignments or subletting, ensuring compliance with the franchise agreement and protecting Body20's interests.