What is the Body20 transfer fee for a transfer resulting in a change of control?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
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 resulting in a change of control is 25% of the then-current franchise fee. This fee is payable in two installments: 50% 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 the franchisee's entity, or (iv) any interests that result in a change in control of the franchisee's entity. This broad definition means that many different scenarios could trigger the higher transfer fee.
However, if the transfer does not close, Body20 will refund 50% of the transfer fee, less their actual costs and expenses related to the proposed transfer. It is also important to note that no transfer fee is due for transfers upon the death, incapacity, or bankruptcy of any Owner. Prospective franchisees should carefully consider these transfer conditions and associated costs, as these can significantly impact the financial implications of selling or transferring their Body20 franchise.