Under what condition is the Body20 Transfer Fee payable?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
tion 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 ou
Source: Item 6 — OTHER FEES (FDD pages 19–26)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a transfer fee is payable when a franchisee transfers any interest in their Franchise Agreement, entity, or Studio. The amount of the transfer fee varies depending on the nature of the transfer. For any transfer resulting in a change of control, the fee is 25% of the then-current franchise fee. For any other type of transfer, the fee is $5,000. 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.
The transfer 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. However, if the transfer does not close, Body20 will refund the initial 50% payment, 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 financial relief during difficult personal circumstances. Additionally, a separate $10,000 transfer fee applies if a franchisee transfers their rights under a Development Agreement to develop any undeveloped Studios. This fee is payable upon the closing of the transfer.