Is a Body20 franchisee required to pay a transfer fee for a Control Transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
additional fee. You acknowledge that we have no obligation to refund the Initial Retail Inventory Kit Payment, in whole or in part, for any reason.
- 3.8 Successor Fee. Upon your execution of a successor franchise agreement pursuant to Section 2.2 (Successor Term), you 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 t
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee is required to pay a transfer fee if a Control Transfer occurs. The transfer fee is equal to 25% of the then-current franchise fee for a new Body20 studio.
To initiate the transfer, the franchisee must pay 50% of the transfer fee when providing notice of the proposed transfer. This initial payment is refundable if the transfer does not proceed, although Body20 may deduct its actual costs and expenses related to the proposed transfer. The remaining 50% of the transfer fee is due when the transfer is finalized and closed.
This fee structure means that franchisees considering a Control Transfer need to be prepared for a significant upfront cost, potentially equal to a substantial percentage of the initial franchise fee. Franchisees should factor in these costs when planning for a potential sale or transfer of their Body20 franchise.