According to the Body20 Franchise Agreement, what actions constitute a 'Transfer'?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
nd thereafter operate Studios in accordance with the Development Schedule will not, in itself, constitute cause for us to terminate any previously-executed Franchise Agreement.
- (b) Other Remedies. If any Event of Default occurs under Section 6.1, in lieu of termination, we may at our option, and in our discretion, unilaterally modify the Development Area and/or modify the Development Schedule to decrease the number of
Studios required to be developed under this Agreement by written notice to you, and such modification shall be effective immediately upon receipt of such written notice from us to you. If we reduce your Development Area or your Development Schedule due to an Event of Default, we will not be obligated to refund any portion of the Development Fee to you.
7. Transfers.
7.1 Transfers by You. This Agreement and the rights granted to you under this Agreement are personal to you. Neither this Agreement, nor any of the rights granted to you hereunder, nor any controlling equity interest in you may be voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, assigned or otherwise transferred, given away, or encumbered by you without our prior written approval, which we may grant or withhold for any or no reason. As a condition of approving an assignment, we may require you or the transferee to comply with any conditions that we specify, including payment of a transfer fee equal to $10,000 for each Studio remaining to be developed under this Agreement at the time of transfer and execution of a general release. If you or your
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, a transfer includes any voluntary or involuntary assignment, or any other method of transferring rights under the agreement. This includes direct or indirect transfers, those occurring by operation of law, or any actions that encumber the agreement or its rights. All transfers require Body20's prior written approval, which Body20 can withhold for any reason.
As a condition of approving a transfer, Body20 may require the franchisee or the transferee to meet certain conditions. These conditions may include paying a transfer fee of $10,000 for each studio remaining to be developed under the agreement at the time of the transfer. Additionally, Body20 may require the execution of a general release.
If a Body20 franchisee or their owners plan to transfer any interest in the franchise or the agreement, Body20 retains the right of first refusal. This means Body20 has the first opportunity to purchase the franchise under the same terms offered to a third party, as detailed in Section 13.9 of the Initial Franchise Agreement. Body20, however, has the right to change their ownership or form and/or assign the agreement to a third party without restriction.