What conditions might Body20 impose on a franchisee or transferee as a condition of approving a Body20 franchise assignment?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Your proposed transferee and their representatives must successfully complete our then-current training requirements at their expense;
(j) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must (i) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge and guarantee all of your obligations under this Agreement and (ii) must execute our then-current form of personal guarantee;
(k) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must execute, for a term ending on the last day of the existing Term and with such Successor Term as is provided by this Agreement, our then-current franchise agreement for new franchisees and such other agreements as we may require, which agreements will supersede this Agreement in all respects.
The terms of the new franchise agreement may differ significantly from the terms of this Agreement, including different fees.
The prospective transferee will not be required to pay any initial Franchise Fee;
(l) Your proposed transferee must make arrangements to modernize, renovate, or upgrade the Studio, at its expense, to conform to our then-current System Standards for new Studios;
(m) Your proposed transferee must covenant that it will continue to operate the Studio under the Marks and using the System;
(n) We must determine, in our sole discretion, that the purchase price and payment terms will not adversely affect the operation of the Studio.
If you or your Owners finance any part of the purchase price, you and they must agree that all obligations under promissory notes, agreements, or security interests reserved in the Studio will be subordinate to the transferee's obligation to pay all amounts due to us and our Affiliates and otherwise to comply with this Agreement; and
- (o) You and your Owners and the transferee and its owners must execute a consent to Transfer agreement in a form that we prescribe that describes the conditions that must be complied with in order to obtain our consent to the Transfer.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 has several conditions that must be met before a franchise assignment is approved. The proposed transferee and their representatives must successfully complete Body20's then-current training program at their own expense. This ensures that the new operator is properly trained in the Body20 system. The transferee must also enter into a written assignment, in a form satisfactory to Body20, assuming all of the franchisee's obligations under the existing agreement, and must execute Body20's current form of personal guarantee.
Additionally, the proposed transferee must execute Body20's then-current franchise agreement for new franchisees, which will supersede the existing agreement. The terms of the new franchise agreement may differ significantly, including different fees; however, the prospective transferee will not be required to pay any initial franchise fee. The transferee must also modernize, renovate, or upgrade the studio to meet Body20's current system standards for new studios, at the transferee's expense. This ensures that all studios maintain a consistent brand image and quality.
The proposed transferee must covenant to continue operating the studio under the Body20 marks and using the Body20 system. Body20 must also determine, in its sole discretion, that the purchase price and payment terms will not adversely affect the studio's operation. If the franchisee or their owners finance any part of the purchase price, they must agree that all obligations under promissory notes, agreements, or security interests will be subordinate to the transferee's obligations to Body20 and its affiliates. Finally, both the franchisee and transferee must execute a consent to transfer agreement that outlines all conditions for obtaining Body20's consent to the transfer.