What section of the Body20 Franchise Agreement discusses the death or disability of the franchisee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| Franchisee Party owns the Site, we may elect to purchase the Site, or lease the Site, from that Franchisee Party. If the Site is leased from an unaffiliated lessor, you must, at our option, cause the applicable Franchisee Party to assign the lease to us or enter into a sublease with us on the same terms. | |||
| p. | Death or disability of franchisee | Section 13.8 | Executor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the death or disability of a franchisee is addressed in Section 13.8 of the Franchise Agreement. In the event of the franchisee's death or disability, their executor or representative has 120 days from the date of death or appointment to dispose of the franchisee's interest under the terms outlined in Section 13 of the Franchise Agreement. A notable exception is that no transfer fee is required for this particular disposition.
This provision ensures a structured process for handling the franchise in unforeseen circumstances, providing a limited timeframe for the franchisee's estate to manage the transfer of the business. The waiver of the transfer fee can be a significant benefit to the franchisee's heirs, reducing the financial burden associated with transferring the franchise.
Prospective franchisees should carefully review Section 13 of the Franchise Agreement to fully understand the terms and conditions applicable to the transfer of the franchise in the event of death or disability. Understanding these provisions is crucial for estate planning and ensuring a smooth transition of the business in such circumstances.