Unless waived by Body20, what must a franchisee arrange regarding a lease rider?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS LEASE RIDER is entered into this day of, 20 by and between BODY20 Franchisor LLC ("Company"), ("Franchisee"), ("Landlord"). | and |
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| WHEREAS, Company and Franchisee are parties to a Franchise Agreement dated | |
| (the "Franchise Agreement"); and | |
| WHEREAS, the Franchise Agreement provides that Franchisee will operate a BODY20® | |
| Studio ("Studio") at a location that Franchisee selects and Company accepts; and | |
| WHEREAS, Franchisee and Landlord propose to enter into the lease to which this Rider | |
| is attached (the "Lease"), pursuant to which Franchisee will occupy premises located at | |
| (the "Premises") for the purpose of constructing and operating the Studio in accordance with the |
WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;
NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
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- During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Studio and for no other purpose.
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- Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the BODY20® system as Company may from time to time prescribe for the Studio.
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- Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
BODY20 Franchisor LLC Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com
Franchise Agreement; and
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- Company will have the right, without being guilty of trespass or any other crime or tort, to enter the Premises at any time or from time to time (i) to make any modification or alteration it considers necessary to protect the BODY20® system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, or (iii) to remove the distinctive elements of the BODY20® trade dress upon the Franchise Agreement's expiration or termination. Neither Company nor Landlord will be responsible to Franchisee for any damages Franchisee might sustain as a result of action Company takes in accordance with this provision. Company will repair or reimburse Landlord for the cost of any damage to the Premises' walls, floor or ceiling that result from Company's removal of trade dress items and other property from the Premises.
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- Franchisee will be permitted to assign the Lease to Company or its designee upon the expiration or termination of the Franchise Agreement. Landlord consents to such an assignment and agrees not to impose any assignment fee or similar change, or to increase or accelerate rent under the Lease, in connection with such an assignment.
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- If Franchisee assigns the Lease to Company or its designee in accordance with the preceding paragraph, the assignee must assume all obligations of Franchisee under the Lease from and after the date of assignment, but will have no obligation to pay any delinquent rent or to cure any other default under the Lease that occurred or existed prior to the date of the assignment.
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- Franchisee may not assign the Lease or sublet the Premises without Company's prior written consent, and Landlord will not consent to an assignment or subletting by Franchisee without first verifying that Company has given its written consent to Franchisee's proposed assignment or subletting.
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- Landlord and Franchisee will not amend or modify the Lease in any manner that could materially affect any of the provisions or requirements of this Lease Rider without Company's prior written consent.
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- The provisions of this Lease Rider will supersede and control any conflicting provisions of the Lease.
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- Landlord acknowledges that Company is not a party to the Lease and will have no liability or responsibility under the Lease unless and until the Lease is assigned to, and assumed by, Company.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, as a condition of Body20 authorizing a franchisee to enter into a lease, the franchisee, Body20, and the landlord must execute a lease rider. The lease rider specifies the terms and conditions under which the franchisee will occupy the premises to operate a Body20 studio. The lease rider also outlines the rights and responsibilities of the landlord, franchisee, and Body20 with respect to the lease and the premises. The lease rider is attached to the lease agreement.
The lease rider includes several provisions. It states that the franchisee is permitted to use the premises only for the operation of the Body20 studio. The landlord consents to the franchisee's use of Body20's trademarks, service marks, signs, and decor items. The landlord also agrees to provide Body20 with copies of all letters and notices sent to the franchisee regarding the lease and premises. The lease rider also specifies that Body20 has the right to enter the premises to protect the Body20 system and marks, cure any default under the Franchise Agreement or the lease, or remove distinctive elements of the Body20 trade dress upon termination or expiration of the Franchise Agreement.
Furthermore, the lease rider states that the franchisee can assign the lease to Body20 or its designee upon the Franchise Agreement's expiration or termination, with the landlord's consent and without any assignment fees or rent increases. If the lease is assigned to Body20, the assignee must assume all obligations of the franchisee under the lease from the assignment date but is not responsible for any prior defaults. The franchisee cannot assign the lease or sublet the premises without Body20's prior written consent, and the landlord must verify Body20's consent before approving any assignment or subletting. The landlord and franchisee cannot amend the lease in any way that materially affects the lease rider without Body20's prior written consent, and the lease rider's provisions supersede any conflicting provisions in the lease. Body20 is not liable under the lease unless the lease is assigned to and assumed by Body20.
For a prospective Body20 franchisee, this means that securing a location and negotiating a lease involves not only the standard negotiations with a landlord but also ensuring that the lease agreement includes the Body20 lease rider. This rider protects Body20's interests and outlines specific conditions for the studio's operation and potential transfer of the lease. Franchisees should carefully review the lease rider with their legal counsel to understand their obligations and the implications of these terms, especially regarding assignment, subletting, and Body20's rights to the premises.