Under what circumstances does Body20's right of first refusal not apply to a transfer?

According to Body20's 2025 Franchise Disclosure Document, Body20's right of first refusal, which allows them to purchase a franchisee's interest under the same terms as a third-party offer, does not apply in specific transfer scenarios. These exceptions are designed to accommodate certain ownership changes without requiring Body20's intervention.

Specifically, Body20's right of first refusal is waived for transfers to an Entity under Section 13.7, which covers permitted transfers such as granting a security interest in the Site, the Studio, or any Operating Assets to a financial institution. It also does not apply to transfers covered under Section 13.8, which addresses transfers upon death, incapacity, or bankruptcy. Additionally, transfers to the franchisee's spouse, son, or daughter are also exempt from Body20's right of first refusal.

This means that a Body20 franchisee can transfer their franchise to these specific parties or under these specific circumstances without needing to offer Body20 the first opportunity to buy the franchise. This provides franchisees with flexibility in managing their business and estate planning, while still ensuring that Body20 maintains control over other types of transfers to maintain brand standards and protect the franchise system.