Does Body20 have sole discretion to withhold consent for a transfer?

According to Body20's 2025 Franchise Disclosure Document, Body20 has sole and absolute discretion to withhold consent for a transfer of the franchise agreement, except as otherwise provided in Sections 13.6, 13.7, and 13.8. These sections pertain to transfers to an entity, permitted transfers, and transfers upon death, incapacity, or bankruptcy, respectively. Body20 may also condition its consent on compliance with any conditions that it specifies. If the Body20 studio is not open and operating, Body20 will not consent to the transfer of the agreement and is under no obligation to do so.

This means that a Body20 franchisee needs to be aware that selling their franchise is not guaranteed. Body20 retains significant control over who can become a new franchisee. A prospective franchisee should carefully consider this when evaluating the potential resale value of the franchise.

It is common in franchising for franchisors to have approval rights over franchise transfers to protect their brand and ensure that new franchisees meet their standards. However, the "sole and absolute discretion" clause gives Body20 a particularly strong position. A prospective franchisee should seek clarification from Body20 regarding the specific criteria and conditions they consider when evaluating a transfer request.