When is the remaining 50% of the Transfer Fee due for a Body20 franchise transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us 50% of the Transfer Fee when you provide us with notice of the proposed Transfer (which will be refunded if the Transfer does not close, less our actual costs and expenses incurred related to the proposed Transfer), and you must pay us the remaining 50% of the Transfer Fee when the Transfer closes.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the timing of the remaining transfer fee payment depends on the type of transfer. For a Control Transfer, the transfer fee is equal to 25% of the then-current franchise fee for a new studio. For any other type of transfer, the transfer fee is $5,000.
The FDD states that 50% of the transfer fee is due when you provide notice of the proposed transfer. The remaining 50% of the transfer fee is due when the transfer closes. If the transfer does not close, the initial 50% is refunded, less Body20's actual costs and expenses incurred related to the proposed transfer.
This means a prospective Body20 franchisee needs to be prepared to pay half of the transfer fee upfront to initiate the transfer process. They should also be aware that if the transfer falls through, they may not receive a full refund of this initial payment, as Body20 can deduct costs and expenses. This is a fairly standard practice in franchising, as the franchisor incurs costs in reviewing and processing transfer applications.