Under what conditions can Body20 withhold consent for a transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
We have sole and absolute discretion to withhold our consent, except as otherwise provided in Sections 13.6 (Transfer to an Entity), 13.7 (Permitted Transfers), and 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy), and we may condition our consent on compliance with any conditions that we specify.
If your Studio is not open and operating, we will not consent to your Transfer of this Agreement, and we are under no obligation to do so.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has sole and absolute discretion to withhold consent for a transfer of the franchise agreement and license, except as otherwise provided in Sections 13.6 (Transfer to an Entity), 13.7 (Permitted Transfers), and 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy). Additionally, Body20 will not consent to a transfer if the studio is not open and operating.
In the context of a Control Transfer, Body20 may reasonably specify conditions that must be met. These conditions include the payment of a transfer fee, ensuring all financial and other obligations to Body20, its affiliates, and approved suppliers are current, fully paid, and satisfied.
This means that a Body20 franchisee needs to be aware that transferring their franchise is not guaranteed and is subject to Body20's approval. Prospective franchisees should carefully consider these transfer conditions and restrictions, as they could impact their ability to exit the business or realize its value. It is important to maintain good standing with Body20 and adhere to all contractual obligations to increase the likelihood of transfer approval.