What is the Body20 transfer fee for a transfer that does not result in a change of control?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
gnated vendor to process all credit card transactions related to your Studio. If we require you to use us |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| or our affiliates, we will disclose to you any required fees that you must pay, which will not exceed 115% of our and our affiliates' actual costs and expenses. | |||
| Product, Service, Supplier, and Service Provider Review | The greater of $1,000 or our and our affiliates' actual costs and expenses related to inspections or the testing the proposed product or evaluating the proposed service or service provider, including personnel and travel costs. | Upon demand | Payable if you wish to offer products or use any supplies, equipment, or services that we have not approved or wish to purchase from a supplier or service provider that we have not approved, whether or not we approve the item, service, supplier, or service provider. |
| Mystery Shopper Program | Currently, we do not charge you a mystery shopper program fee. | Upon demand | We may require you to participate in a mystery shopper service. If we engage the mystery shopping service on your behalf, you must pay us a fee that will not exceed 110% of our and our affiliates actual costs and expenses. Details of any program and fees will be included in the Manuals. |
| Successor Fee | 25% of the then-current franchise fee | Upon execution of successor franchise agreement | Payable if you are qualify for, and enter into, a successor term. |
| Transfer Fee Under the Franchise Agreement | 25% of the then-current franchise fee for any transfer resulting in a change of control; $5,000 for any other transfer. | 50% due when you provide us notice of the proposed transfer and 50% when the transfer closes | Payable to us if you transfer any interest in your Franchise Agreement, entity, or Studio. A "Control Transfer" occurs if there is a transfer of (i) any interest in the Franchise Agreement, (ii) the Studio or substantially all of its assets, (iii) more than 20% of the ownership interests in you, or (iv) any interests that result in a change in control of your entity. See Item 17.k for the definition of "transfer." If the transfer does not close, we will refund the 50%, less our actual costs and expenses related to the proposed transfer. No Transfer Fee is due for transfers upon the death, incapacity, or bankruptcy of any Owner. |
| Transfer Fee Under the Development Agreement | $10,000 for each then undeveloped Studio. | Upon the closing of the transfer | Payable if you transfer your rights under a Development Agreement to develop any undeveloped Studios. |
| Relocation Fee | $5,000 | Upon demand | Payable if you relocate your Studio from the Site to a new location. |
| Type of Fee | Amount | Due Date | Remarks |
| --------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Audit | Up to 120% of our and our affiliates' costs and expenses, including charges of any independent accountant, any related attorneys' fees, and the cost of travel and living expenses and wages for the accountant and our employees and other agents. | Within 10 days of demand | Payable if audit or review shows an understatement of Gross Sales for the audited or reviewed period of 2% or more. |
| Late Fee and Interest | 18% per annum or maximum interest rate allowed by law (whichever is less) from due date to date of payment, plus $100 for each week that a payment is paid after the due date for the payment specified. | When amount owed becomes past due | Required whenever a payment to us is made after its due date. We may increase the amount of the late fee upon 60 days' prior written notice; however, it will not exceed $250 per week. |
| Inspection | Up to 120% of our and our affiliates' costs in inspecting your business, including travel and living expenses and wages for our representatives. | Upon demand | Payable if inspection is necessitated by your repeated or continuing failure to comply with any provision of the Franchise Agreement. |
| Remedial Expenses | Up to 120% of our and our affiliates' costs and expenses related to correcting your operational deficiencies | Upon demand | Payable if we correct deficiencies that we have identified during a Site inspection and that you failed to correct within a reasonable time after notice from us, not to exceed 30 days. |
| Non Compliance Fee | Up to $1,000 per single violation per day. | Upon receipt of written notice | If we determine that you have violated any of your Franchise Agreement obligations, we may charge you one or more Non Compliance Fees, which (a) will be specified in the Manuals or otherwise in writing, (b) may be modified upon written notice, (c) may be charged repeatedly (as frequently as daily) if non-compliance is ongoing, and (d) may vary based on the severity and number of defaults and whether the defaults have been repeated. |
| Insurance Procurement Fee | Up to 120% of our and our affiliates' costs and expenses related to procuring and maintaining the required insurance. | Upon demand | Payable only if you fail to maintain the minimum insurance we require, and we choose to procure the required insurance for you. |
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the transfer fee for a transfer that does not result in a change of control is $5,000. This fee is payable to Body20 if a franchisee transfers any interest in their Franchise Agreement, entity, or Studio. The FDD specifies that 50% of the fee is due when the franchisee provides notice of the proposed transfer, and the remaining 50% is due when the transfer closes.
A "Control Transfer" is defined as a transfer of (i) any interest in the Franchise Agreement, (ii) the Studio or substantially all of its assets, (iii) more than 20% of the ownership interests in you, or (iv) any interests that result in a change in control of your entity. If the transfer does not meet this definition, the transfer fee is $5,000. If the transfer does not close, Body20 will refund 50% of the fee, less their actual costs and expenses related to the proposed transfer.
Notably, no transfer fee is due for transfers upon the death, incapacity, or bankruptcy of any Owner. This provides some relief in situations where the franchise needs to be transferred due to unforeseen personal circumstances. Franchisees should carefully review Item 17.k of the FDD, as referenced in the table, for the complete definition of "transfer" to fully understand what actions trigger the transfer fee.