Are there any exceptions to the requirement of obtaining Body20's consent for a transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The other provisions in this Section do not apply, including our right of first refusal and right of approval, to the following Transfers:
- (a) Security Interests.
You may grant, without obtaining our consent, a security interest in the Site (if you own the Site), the Studio, or any Operating Assets to a financial institution or other party that provided or provides any financing for your acquisition, development, and/or operation of the Studio, but you may not grant a security interest in this Agreement.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee generally needs prior written consent from Body20 to transfer their franchise agreement or license. However, there are exceptions to this requirement.
The document specifies that the provisions regarding Body20's right of first refusal and approval do not apply to certain transfers. Specifically, a franchisee may grant a security interest in the site (if they own it), the studio, or any operating assets to a financial institution or other party that provides financing for the acquisition, development, and/or operation of the studio without obtaining Body20's consent. However, the franchisee cannot grant a security interest in the franchise agreement itself without consent.
These permitted transfers provide some flexibility for Body20 franchisees in securing financing for their business. It is important for prospective franchisees to understand these exceptions and how they might impact their ability to manage and finance their Body20 studio.