Is a transfer fee payable in connection with the disposition of a Body20 franchise interest following 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, in the event of the death or disability of a franchisee, the executor or representative is required to dispose of the franchise interest within 120 days after their appointment. The disposition must be under the terms outlined in Section 13 of the Franchise Agreement.
A significant benefit to the franchisee's estate or representative is that no transfer fee is payable in connection with this disposition. This waiver of the transfer fee can alleviate some of the financial burden during what is already a difficult time.
This provision is relatively common in franchising, as it aims to facilitate a smooth transition of ownership without adding extra costs that could hinder the sale of the franchise. It allows the estate to focus on finding a suitable buyer who meets Body20's qualifications, rather than being burdened by additional fees. This can help ensure the continued operation of the Body20 studio and maintain the brand's standards.