Under what condition is a Body Brain Center franchisee NOT charged a transfer fee?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (10) The transfer fee is only paid if you transfer or sell your franchise. We will not charge you the transfer fee if you transfer the franchise to an entity that you control. The transferee must also pay us $10,000 for each new Owner and manager that we
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, a franchisee will not be charged a transfer fee if they transfer the franchise to an entity that they control. However, the transferee must still pay Body Brain Center $10,000 for each new Owner and manager that requires training.
This condition is important for franchisees planning their exit strategy or those considering restructuring their business. By transferring the franchise to a controlled entity, a franchisee can avoid the transfer fee, which is capped at $3,000, representing Body & Brain Center's costs incurred as part of the transfer.
However, it is crucial to note that even if the transfer fee is waived, the new owners or managers of the transferred entity are still subject to the initial training fee of $10,000 each. This could be a significant cost to consider during the transfer process. Franchisees should carefully evaluate the implications of these fees when planning a transfer, even to a controlled entity.