What characteristics does Body Brain Center look for in a proposed transferee?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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Agreement, provided that we shall, subsequent to any such assignment, remain liable for the performance of our obligations under this Agreement up to the effective date of the assignment. We may also delegate some or all of our obligations under this Agreement to one or more persons without assigning the Agreement.
- 19.2 By You. You understand that the rights and duties created by this Agreement are personal to you and the Owners and that we have granted the franchise in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of you and your Owners. Therefore, neither you nor any Owner may engage in any Transfer other than a Permitted Transfer without our prior written approval. Any Transfer (other than a Permitted Transfer) without our approval shall be void and constitute a breach of this Agreement. We will not unreasonably withhold our approval of any proposed Transfer, provided that the following conditions are all satisfied:
- (i) the proposed transferee is, in our opinion, an individual of good moral character, who has sufficient business experience, aptitude and financial resources to own and operate a Body & Brain Center and otherwise meets all of our then applicable standards for franchisees;
- (ii) you and your Owners are in full compliance with the terms of this Agreement and all other agreements with us or our affiliate;
- (iii) all of the owners of the transferee have successfully completed or made arrangements to attend the initial training program (and the transferee has paid us the initial training fee for each new owner and manager who attends training);
- (iv) your landlord consents to your assignment of the lease to the transferee, or the transferee is diligently pursuing an approved substitute location within the Site Selection Area;
- (v) the transferee and its owners sign our then current form of franchise agreement, except that: (a) the Term and renewal term(s) shall be the Term and renewal term(s) remaining under this Agreement; and (b) the transferee need not pay a separate initial franchise fee;
- (vi) you or the transferee pay us a $3,000 transfer fee to defray expenses that
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the company has specific criteria for approving a franchise transfer. Body Brain Center emphasizes that the original franchise agreement was granted based on the personal and business attributes of the original franchisee and their owners. Therefore, any transfer is subject to their approval, ensuring that the new franchisee meets their standards.
Body Brain Center will assess whether the proposed transferee has good moral character, sufficient business experience, aptitude, and financial resources to successfully manage a Body & Brain Center. The transferee must also meet all of Body Brain Center's then-current standards for franchisees. Additionally, all owners of the transferee entity must complete the initial training program, and the transferee must pay the initial training fee for each new owner or manager attending the training.
Furthermore, the transferee must adhere to the existing franchise agreement's terms, including obtaining landlord consent for lease assignment or securing an approved substitute location. The transferee must also sign Body Brain Center's current franchise agreement form, although they are not required to pay a separate initial franchise fee. A $3,000 transfer fee is required to cover Body Brain Center's expenses related to the transfer. Finally, both the original franchisee and their owners must sign a general release for all claims predating the transfer, and they must agree to subordinate the transferee's obligations to them to the transferee's financial obligations to Body Brain Center.