What information must a Body20 franchisee provide to Body20 when seeking consent for a transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
which these transactions take place. References to a "Controlling Interest" in you mean either (a) 20% or more of the direct or indirect legal or beneficial ownership interests in your Entity or (b) the acquisition of an ownership interest or other right or interest which grants the power (whether directly or indirectly) to direct or cause the direction of management and polices
of you or the Studio to any individual or Entity, or group of individuals or Entities, that did not have that power before that acquisition.
13.3 Transfer Procedure.
- (a) Consent Required. This Agreement and the License are personal to you, and we have granted the License in reliance on your and your Owners' business skill, financial capacity, and personal character. Accordingly, neither you nor any of the Owners or any successors to any part of your interest in this Agreement or the License may make any Transfer or permit any Transfer to occur without obtaining our prior written consent, except as provided in Section 13.7 (Permitted Transfers). Any purported Transfer, without our prior written consent, will be null and void and will constitute an Event of Default (as herein defined), for which we may terminate this Agreement without opportunity to cure.
- (b) Obtaining Consent. If you or any of your Owners desire to make a Transfer, you must promptly provide us with advance written notice and must submit a copy of all proposed contracts and other information concerning the Transfer and transferee that we reasonably require. We have the right to communicate with both you, your counsel, and the proposed transferee on any aspect of a proposed Transfer. No Transfer that requires our consent may be completed until at least 60 days after we receive written notice of the proposed Transfer. We have sole and absolute discretion to withhold our consent, except as otherwise provided in Sections 13.6 (Transfer to an Entity), 13.7 (Permitted Transfers), and 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy), and we may condition our consent on compliance with any conditions that we specify. If your Studio is not open and operating, we will not consent to your Transfer of this Agreement, and we are under no obligation to do so. Our consent to a Transfer does not constitute a waiver of any claims that we have against the transferor, nor is it a waiver of our right to demand exact compliance with the terms of this Agreement.
- 13.4 Control Transfer. For a proposed Control Transfer, in addition to any other conditions that we reasonably specify, the following conditions apply (unless waived by us):
- (a) You or your transferee must pay us the Transfer Fee;
- (b) All of your accrued monetary obligations and all other outstanding obligations to us, our Affiliates, and approved suppliers shall be up to date, fully paid, and satisfied;
- (c) You and your Affiliates must not be in default if any provision of this Agreement and any Related Agreements as of (i) the date of the request for our approval of the Transfer (or you must make arrangements satisfactorily to us to come into compliance by the date of the Transfer) and (ii) the date of the Transfer;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee or any of their owners wish to transfer their franchise, they must provide Body20 with advance written notice. This notice must include a copy of all proposed contracts and any other information concerning the transfer and the potential transferee that Body20 reasonably requires. Body20 retains the right to communicate with the franchisee, their counsel, and the proposed transferee regarding any aspect of the proposed transfer. No transfer requiring Body20's consent can be completed until at least 60 days after Body20 receives written notice of the proposed transfer.
Body20 has the sole and absolute discretion to withhold consent for a transfer, except as otherwise provided in specific sections regarding transfers to an entity, permitted transfers, and transfers upon death, incapacity, or bankruptcy. Body20 may also condition its consent on compliance with any conditions it specifies. If the Body20 studio is not open and operating, Body20 will not consent to the transfer of the agreement and is under no obligation to do so.
For a proposed control transfer, the franchisee or transferee must pay Body20 a transfer fee, and all accrued monetary and outstanding obligations to Body20, its affiliates, and approved suppliers must be up to date, fully paid, and satisfied. Additionally, both the franchisee and their owners, as well as the transferee and its owners, must execute a consent to transfer agreement in a form prescribed by Body20, outlining the conditions that must be met to obtain consent for the transfer.
For transfers that do not result in a control transfer, the franchisee and/or transferee must generally satisfy the same conditions as control transfers, with some exceptions. The conditions that do not apply to non-control transfers include obtaining the landlord's consent, completing training, signing a new franchise agreement, and renovating the studio. The franchisee and their owners must also sign the form of agreement and related documents specified by Body20 to reflect the new ownership structure. These stipulations ensure that Body20 maintains control over who operates its franchises and that any transfer meets its standards and requirements.