What qualifications must the transferee meet to be approved for a Body20 Control Transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) Your proposed transferee (or, if the transferee is not an individual, all owners of any legal or beneficial interest in the transferee) must demonstrate to our satisfaction that such transferee meets all of our then-current qualifications to become a franchisee, including not having any involvement with a Competitive Business.
If the transferee or its Affiliates already own a Studio, the transferee and its Affiliates must not be in default under any of their agreements with us or our Affiliates, must have a good record of customer service and compliance with our System Standards, and must, in our sole opinion, have sufficient financial and operational capacity to operate additional Studios;
(i) Your proposed transferee and their representatives must successfully complete our then-current training requirements at their expense;
(j) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must (i) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge and guarantee all of your obligations under this Agreement and (ii) must execute our then-current form of personal guarantee;
(k) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must execute, for a term ending on the last day of the existing Term and with such Successor Term as is provided by this Agreement, our then-current franchise agreement for new franchisees and such other agreements as we may require, which agreements will supersede this Agreement in all respects.
The terms of the new franchise agreement may differ significantly from the terms of this Agreement, including different fees.
The prospective transferee will not be required to pay any initial Franchise Fee;
(l) Your proposed transferee must make arrangements to modernize, renovate, or upgrade the Studio, at its expense, to conform to our then-current System Standards for new Studios;
(m) Your proposed transferee must covenant that it will continue to operate the Studio under the Marks and using the System;
(n) We must determine, in our sole discretion, that the purchase price and payment terms will not adversely affect the operation of the Studio.
If you or your Owners finance any part of the purchase price, you and they must agree that all obligations under promissory notes, agreements, or security interests reserved in the Studio will be subordinate to the transferee's obligation to pay all amounts due to us and our Affiliates and otherwise to comply with this Agreement; and
- (o) You and your Owners and the transferee and its owners must execute a consent to Transfer agreement in a form that we prescribe that describes the conditions that must be complied with in order to obtain our consent to the Transfer.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a proposed transferee must meet several qualifications to be approved for a Control Transfer. The transferee must demonstrate that they meet all of Body20's then-current qualifications to become a franchisee. This includes ensuring they have no involvement with a Competitive Business. If the transferee or its affiliates already own a Body20 studio, they must not be in default under any agreements with Body20 or its affiliates.
Furthermore, existing Body20 owners seeking to transfer must ensure their other Body20 locations have a good record of customer service and compliance with Body20's System Standards. Body20 must also be satisfied that the transferee has sufficient financial and operational capacity to operate additional studios. The proposed transferee and their representatives must successfully complete Body20's then-current training requirements at their own expense.
The transferee must also enter into a written assignment, in a form satisfactory to Body20, agreeing to discharge and guarantee all of the transferor's obligations under the Franchise Agreement and execute Body20's then-current form of personal guarantee. The transferee must execute Body20’s then-current franchise agreement for new franchisees, which will supersede the existing agreement and may have significantly different terms, although the transferee won't have to pay an initial franchise fee. The transferee must also modernize, renovate, or upgrade the studio to conform to Body20’s then-current System Standards for new studios and covenant to continue operating the studio under the Marks and using the System.
Finally, Body20 must determine, in its sole discretion, that the purchase price and payment terms will not adversely affect the operation of the studio. Both the transferor and transferee must execute a consent to Transfer agreement in a form prescribed by Body20, which outlines the conditions that must be met to obtain Body20's consent to the transfer. If the transferor or their owners finance any part of the purchase price, they must agree that all obligations under promissory notes, agreements, or security interests reserved in the studio will be subordinate to the transferee's obligation to pay all amounts due to Body20 and its affiliates and otherwise comply with the Franchise Agreement.