Does Body20's consent to a transfer waive any existing 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, it does not waive Body20's right to demand exact compliance with the terms of the franchise agreement. This means that even if Body20 approves the transfer of the franchise to a new owner, Body20 still retains all rights to pursue any existing claims against the original franchisee (the transferor).

This provision protects Body20's interests by ensuring that it can still hold the original franchisee accountable for any breaches of the franchise agreement that occurred before the transfer. For a prospective franchisee looking to sell their Body20 franchise, this means they could still be liable for issues that occurred during their time as a franchisee, even after the franchise has been transferred to a new owner.

It is important for a franchisee considering a transfer to understand that the transfer process involves several steps, including providing Body20 with advance written notice and copies of all proposed contracts related to the transfer. Body20 has the sole and absolute discretion to withhold consent for the transfer, and can also condition its consent on compliance with specific conditions. Therefore, franchisees should ensure they are fully compliant with all terms of the franchise agreement before attempting to transfer their franchise to minimize potential liabilities.