What is the limitation on transfer fees that Body20 can collect?
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, the transfer fee structure depends on the type of transfer. If a Control Transfer occurs, Body20 requires a transfer fee equal to 25% of the then-current franchise fee for a new studio. For any other type of transfer, the transfer fee is capped at $5,000.
Body20 requires the franchisee to pay 50% of the transfer fee when they provide notice of the proposed transfer. This portion is refundable if the transfer does not close, but Body20 may deduct their actual costs and expenses related to the proposed transfer. The remaining 50% of the transfer fee is due when the transfer is finalized.
This fee structure means that franchisees considering selling their Body20 franchise need to be aware of these costs, which can vary significantly depending on whether the transfer is considered a Control Transfer. Franchisees should clarify with Body20 what constitutes a Control Transfer to accurately estimate potential transfer fees.