Who bears the responsibility for paying the $3,000 transfer fee to Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3 Other Fees and Payments.
You agree to pay all other fees, expense reimbursements and other amounts specified in this Agreement in a timely manner (such as training fees, renewal fees, transfer fees, etc.).
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Body Brain Center franchisees are responsible for paying various fees, including transfer fees. Item 13.3 of the FDD states that franchisees must pay all fees, expense reimbursements, and other amounts specified in the agreement, including transfer fees, in a timely manner. This indicates that the franchisee is responsible for covering the transfer fee.
According to Note D of the financial statements, Body & Brain Center has a licensing agreement with BR Consulting, Inc., where Body & Brain Center pays 20% of the total initial franchise fee, franchise renewal fee, training fee, and transfer fee to BR Consulting, Inc. This payment structure highlights the franchisor's obligations concerning a portion of the transfer fee, but it does not change the franchisee's initial responsibility to pay the transfer fee to Body & Brain Center.
While the FDD specifies that the franchisee is responsible for paying the transfer fee, the exact amount of the transfer fee is not specified in the provided excerpts. A prospective franchisee should carefully review the franchise agreement and relevant FDD sections to determine the specific amount of the transfer fee and the circumstances under which it is payable.