What fees must be paid to Body Brain Center when transferring a franchise?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| THE FRANCHISE RELATIONSHIP | ||
|---|---|---|
| PROVISION | SUMMARY | |
| m. Conditions for our approval of transfer | Section 19.2 | Transferee must meet our qualifications, successfully complete the initial training program (and pay initial training fee), obtain all required licenses and permits, and sign a new franchise agreement for the remainder of the term. You must be compliant with your Franchise Agreement, assign your lease if applicable, pay us the transfer fee and sign a general release and subordination agreement. We must notify you that we do not intend to exercise our right of first refusal. |
Source: Item 17 — RENEWAL**, TERMINATION, TRANSFER, **AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must pay a transfer fee to Body Brain Center. Additionally, the prospective transferee must successfully complete the initial training program and pay the associated initial training fee.
Beyond the fees, several other conditions apply to the transfer. The franchisee must be in compliance with their existing Franchise Agreement at the time of transfer. If applicable, they must also assign their lease to the new franchisee. As part of the transfer process, the franchisee is required to sign a general release and subordination agreement, which likely releases Body Brain Center from any potential liabilities related to the prior franchisee's operation of the business.
Finally, Body Brain Center retains the right of first refusal, meaning they have the option to match any legitimate offer made for the franchise. Body Brain Center must notify the franchisee if they do not intend to exercise this right, allowing the franchisee to proceed with their chosen buyer.