What outstanding obligations must be satisfied before a Body20 Control Transfer can occur?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(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;
(d) You and your Owners must execute a general release, in a form that we prescribe, of any and all claims (to the extent permitted by Applicable Laws) against us, our Affiliates, and our and our Affiliates' past, present, and future officers, directors, mangers, members, equity holders, agents, and employees, including claims arising under Applicable Laws;
(e) You and your Owners must agree to remain liable for all of the obligations to us in connection with the Studio arising before the effective date of the Transfer and execute any and all instruments that we reasonably request to evidence such liability;
(f) You and your Owners must continue to be bound by the provisions of Sections 9 (Intellectual Property), 10 (Proprietary Information), 11 (Indemnification), and 12 (Noncompete Covenants) as if they were the Franchisee and this Agreement had expired or terminated as of the effective 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, several financial and legal obligations must be met before a Control Transfer can occur. The franchisee or the transferee must pay Body20 the Transfer Fee. All accrued monetary obligations and any other outstanding debts to Body20, its affiliates, and approved suppliers must be fully paid and satisfied.
Furthermore, neither the franchisee nor its affiliates can be in default of any provision within the Franchise Agreement or any related agreements at the time of requesting approval for the transfer, or they must make satisfactory arrangements to come into compliance by the transfer date. The franchisee and its owners must also execute a general release, in a form prescribed by Body20, releasing any claims against Body20, its affiliates, and their officers, directors, managers, members, equity holders, agents, and employees.
Finally, the franchisee and owners must agree to remain liable for all obligations to Body20 related to the studio that arose before the transfer's effective date, and they must sign any instruments reasonably requested by Body20 to evidence this liability. They must also continue to be bound by the provisions regarding intellectual property, proprietary information, indemnification, and non-compete covenants, as if the agreement had expired or terminated.