Upon expiration or termination of the Body20 Franchise Agreement, is the franchisee permitted to assign the lease to Body20?

According to Body20's 2025 Franchise Disclosure Document, a franchisee is permitted to assign the lease to Body20 or its designee upon the expiration or termination of the Franchise Agreement. The landlord consents to this assignment and agrees not to impose any assignment fee or similar charge, or increase or accelerate rent related to the assignment. This provision is outlined in the Lease Rider, which is a condition for Body20 authorizing the franchisee to enter into the lease.

However, if the franchisee assigns the lease to Body20 or its designee, the assignee must assume all obligations of the franchisee under the lease from the assignment date forward. The assignee will not be obligated to pay any delinquent rent or cure any other default under the lease that occurred before the assignment date. 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 agreeing to any assignment or subletting.

This arrangement provides Body20 with a degree of control over the location of the franchise, even after the franchise agreement ends. It ensures that Body20 can maintain a presence in a desirable location if the franchisee exits the business. For the franchisee, it offers a potential exit strategy by allowing them to assign the lease to Body20, but it also requires them to maintain the lease in good standing to avoid any pre-existing defaults that Body20 would not be responsible for upon assignment.