Does Body20's consent to a transfer waive any claims against the transferor?

According to Body20's 2025 Franchise Disclosure Document, Body20's consent to a transfer of the franchise agreement does not constitute a waiver of any claims that Body20 has against the transferor. Additionally, Body20's consent does not waive its right to demand exact compliance with the terms of the franchise agreement. This means that even if Body20 approves a transfer, the original franchisee (transferor) remains liable for any existing breaches or obligations under the agreement.

This provision protects Body20 by ensuring that it can still pursue legal action against the original franchisee for any violations of the franchise agreement, even after the franchise has been transferred to a new owner. It also reinforces Body20's right to enforce all terms of the agreement, preventing the transfer from being used as a means to circumvent contractual obligations.

For a prospective Body20 franchisee, this clause highlights the importance of fulfilling all obligations under the franchise agreement before attempting to transfer the franchise. Any outstanding debts, unresolved disputes, or non-compliance issues could still be pursued by Body20 against the original franchisee, even after the transfer is complete. Therefore, franchisees should ensure they are in good standing with Body20 before initiating a transfer to avoid potential liabilities.