Is a transfer fee required for a Body20 Control Transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Control Transfer (as defined in Section 13.2 (Definition of Transfer)) occurs, you must pay us a transfer fee equal to 25% of the then-current franchise fee for a new Studio (the "Transfer Fee").
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 Body20's 2025 Franchise Disclosure Document, a transfer fee is required for a Control Transfer. If a Control Transfer occurs, the franchisee must pay Body20 a transfer fee equal to 25% of the then-current franchise fee for a new studio. This fee is referred to as the "Transfer Fee."
The franchisee is required to pay 50% of the Transfer Fee when they provide notice of the proposed transfer. This portion is refundable if the transfer does not proceed, although Body20 may deduct their actual costs and expenses related to the proposed transfer. The remaining 50% of the Transfer Fee must be paid when the transfer is finalized.
In addition to the transfer fee, Body20 requires that all accrued monetary obligations and other outstanding obligations to Body20, its affiliates, and approved suppliers be up to date, fully paid, and satisfied before a Control Transfer can occur. This ensures that the Body20 franchise is in good financial standing before ownership changes.