For a Body20 Control Transfer, what must the franchisee and their affiliates not be in default of?

According to Body20's 2025 Franchise Disclosure Document, for a Control Transfer to be approved, the franchisee and their affiliates must not be in default of any provision within the Franchise Agreement or any Related Agreements. This requirement must be met both at the time the franchisee requests approval for the transfer and on the actual date of the transfer. However, Body20 may allow the franchisee to make arrangements to come into compliance by the date of the transfer, at Body20's discretion.

This stipulation ensures that franchisees are in good standing with Body20 before transferring ownership. Any defaults, if unaddressed, could negatively impact the brand's reputation and the new franchisee's success. Related Agreements could include lease agreements, supplier contracts, or other agreements related to the operation of the Body20 studio.

For a prospective Body20 franchisee, this means maintaining compliance with all agreements is crucial, especially if considering a future transfer. Failure to do so could delay or even prevent the transfer. It is important to understand what constitutes a 'Related Agreement' and what actions could be considered a 'default' under those agreements. Franchisees should seek clarification from Body20 regarding any potential compliance issues well in advance of planning a transfer.