After Body20 accepts the site, what rights do I have in the Site Selection Area outside the Territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Once the Site has been accepted, we will identify your Territory in Schedule 1 to Appendix A based on the factors that we deem relevant, in our sole discretion, which might include demographics, the character and location of the Site, and nearby businesses and residences.
Once we have defined the Territory, you will have no territorial or other rights in those portions of the Site Selection Area that are outside the Territory.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, once Body20 accepts your proposed site, your rights within the Site Selection Area but outside of your designated Territory are limited. Specifically, you have no territorial or other rights in those portions of the Site Selection Area that fall outside the Territory defined by Body20. This means that while you initially have a Site Selection Area to find a suitable location, your exclusive rights are confined to the Territory that Body20 designates after the site is accepted.
Body20 retains the right to conduct business activities, under any name, in any geographic area, including those areas within your Site Selection Area but outside your Territory. This includes the right to establish or license others to operate Body20 studios or similar businesses, even those offering identical services, outside of your Territory. They can do so under the Body20 brand or under different names and brands, without providing you any protection in those areas.
This lack of protection outside your Territory has significant implications for potential Body20 franchisees. It means that Body20 could potentially establish another franchise or corporate-owned studio nearby, which could compete directly with your location. The FDD specifies that Non-Traditional Locations, such as gyms, cruise ships, or college campuses, are not subject to territorial restrictions, allowing Body20 even greater freedom to establish new locations near your franchise. Therefore, it is crucial for prospective franchisees to carefully consider the defined Territory and the potential for competition within the broader Site Selection Area before signing the agreement.
Given these conditions, a prospective Body20 franchisee should seek clarity from Body20 regarding their strategic plans for the Site Selection Area. Understanding Body20's intentions for future expansion in the area can help a franchisee assess the potential competitive landscape and make a more informed decision. It is also important to negotiate the Territory boundaries to ensure they adequately protect the franchisee's investment and market area.