Within how many days after Body20's notice to purchase must the closing on the purchase occur?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Our Right. We have the right, exercisable within 30 days after receipt of the notice of your intent to Transfer and such documentation and information that we require, to send written notice to you that we intend to purchase the interest proposed to be Transferred on the same economic terms and conditions offered by the third-party or, at our option, the cash equivalent thereof. If you and we cannot agree on the reasonable equivalent in cash or if the Transfer is proposed to be made by gift, we will designate, at our expense, an independent appraiser to determine the fair market value of the interest proposed to be transferred. We may purchase the interest at the fair market value determined by the appraiser or may elect at that time to not exercise our rights. We must receive, and you and your Owners agree to make, all customary representations, warranties and indemnities given by the seller of the assets of a business or ownership interests in an Entity, as applicable, including (i) representations and warranties regarding ownership and condition of, and title to, assets and (if applicable) ownership interests, liens and encumbrances on assets, validity of contracts and agreements, and the liabilities, contingent or otherwise, relating to the assets or ownership interests being purchased, and (ii) indemnities for all actions, events and conditions that existed or occurred in connection with the Studio or your business prior to the closing of our purchase. Closing on our purchase must occur within 90 days after the date of our notice to the seller electing to purchase the interest. We may assign our right of first refusal to another Entity or person either before or after we exercise it. However, our right of first refusal will not apply with regard to Transfers to an Entity under Section 13.7 (Permitted Transfers) or 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy) or Transfers to your spouse, son, or daughter.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee intends to transfer their interest, Body20 has the right of first refusal to purchase that interest. If Body20 elects to exercise this right and sends written notice of its intent to purchase, the closing on the purchase must occur within 90 days after the date of Body20's notice to the seller.
This means that a Body20 franchisee looking to sell their franchise should be aware that Body20 has a window of time to decide whether to buy the franchise themselves. If Body20 decides to purchase the franchise, the franchisee must be prepared to close the sale within the specified 90-day period. This could impact the franchisee's timeline for selling and moving on to other ventures.
It is also important to note that Body20 may assign its right of first refusal to another entity or person. However, this right of first refusal does not apply to transfers to an entity under Section 13.7 (Permitted Transfers) or 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy) or Transfers to your spouse, son, or daughter.