When is the first 50% of the Transfer Fee due for a Body20 franchise transfer, and is it refundable?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
will pay to us, instead of the franchise fee under such successor franchise agreement, a successor fee equal to 25% of such franchise fee (the "Successor Fee").
- 3.9 Transfer Fee. If a Control Transfer (as defined in Section 13.2 (Definition of Transfer)) occurs, you must pay us a transfer fee equal to 25% of the then-current franchise fee for a new Studio (the "Transfer Fee"). For any other Transfer, the Transfer Fee shall be equal to $5,000.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee must pay 50% of the Transfer Fee when they provide notice of the proposed transfer. The remaining 50% of the Transfer Fee is due when the transfer closes.
For a regular transfer, the transfer fee is $5,000. However, if a Control Transfer occurs, the transfer fee is equal to 25% of the then-current franchise fee for a new Body20 studio.
The initial 50% payment of the transfer fee is refundable if the transfer does not close. However, Body20 will deduct their actual costs and expenses incurred related to the proposed transfer from the refund. This means that if the transfer falls through, the franchisee may not get the entire 50% back, as Body20 can retain funds to cover expenses they incurred during the process.