For a Body20 Control Transfer, what happens if the franchisee and owners do not continue to be bound by the provisions of Sections 9, 10, 11, and 12?

According to Body20's 2025 Franchise Disclosure Document, a franchisee and their owners must continue to be bound by Sections 9, 10, 11, and 12 of the franchise agreement as if the agreement had expired or terminated for a control transfer to be approved. These sections cover intellectual property, proprietary information, indemnification, and noncompete covenants.

Specifically, Section 9 pertains to intellectual property, meaning the franchisee and owners must still respect and protect Body20's trademarks, copyrights, and other intellectual property. Section 10 concerns proprietary information, so they must maintain the confidentiality of Body20's business methods, customer data, and other sensitive information. Section 11 deals with indemnification, requiring them to cover any losses or liabilities Body20 incurs due to their actions before the transfer. Section 12 involves noncompete covenants, preventing them from engaging in any business that competes with Body20.

If the franchisee and owners do not agree to remain bound by these provisions, Body20 will not approve the control transfer. This requirement ensures that even after the transfer, the franchisee and owners remain accountable for protecting Body20's interests and adhering to the franchise agreement's key terms.