Under what conditions are transfer fees collectable by Body20?

According to Body20's 2025 Franchise Disclosure Document, transfer fees are required when a franchise owner transfers their franchise to another party. The amount of the transfer fee depends on the type of transfer. If a Control Transfer occurs, the transfer fee is equal to 25% of the then-current franchise fee for a new Body20 studio. For any other type of transfer that does not result in a Control Transfer, the transfer fee is $5,000.

When a Body20 franchisee proposes a transfer, they must pay 50% of the transfer fee upfront. This initial payment is refundable if the transfer does not go through, although Body20 can deduct their actual costs and expenses related to the proposed transfer. The remaining 50% of the transfer fee is due when the transfer is completed and closed.

Body20 also outlines specific conditions that must be met for a transfer to be approved. Both the current franchisee and the new transferee must sign a consent to transfer agreement, which details all the conditions that must be satisfied to get Body20's approval. These conditions can include paying all outstanding obligations to Body20 and its affiliates, signing a general release, and remaining liable for pre-transfer obligations. However, certain conditions like obtaining the landlord's consent, completing training, signing a new franchise agreement, and renovating the studio may be waived for transfers that are not Control Transfers.