If a Body Brain Center franchisee assigns their lease, is that a condition for transfer?
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, assigning the lease, if applicable, is a condition for transfer. The franchisee must be compliant with their Franchise Agreement and assign the lease. Additionally, the franchisee must ensure the transferee meets Body Brain Center's qualifications, successfully completes the initial training program (and pays the initial training fee), obtains all required licenses and permits, and signs a new franchise agreement for the remainder of the term.
Furthermore, the franchisee must pay Body Brain Center the transfer fee and sign a general release and subordination agreement. Body Brain Center must also notify the franchisee that they do not intend to exercise their right of first refusal. These stipulations ensure that any transfer of the franchise adheres to Body Brain Center's standards and protects its interests.
This requirement is fairly standard in franchising, as franchisors typically want to maintain control over the location and ensure that the new franchisee is fully qualified and committed to the brand. The right of first refusal allows Body Brain Center to buy back the franchise if they choose, rather than allowing it to be transferred to an outside party.