According to the Body20 franchise agreement, what constitutes a 'Competitive Business'?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
14. Competitive Business (Section 12.1): A "Competitive Business" means: (i) any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business, (ii) any business that offers fitness training or products, services, or Sessions that are similar to those offered by a Studio, and/or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, a 'Competitive Business' is comprehensively defined within the franchise agreement to protect Body20's market position. This definition includes any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business. This broad categorization ensures that various types of fitness establishments are considered competitive if they offer similar services.
Furthermore, the definition extends to any business that offers fitness training or products, services, or sessions that are similar to those offered by a Body20 studio. This encompasses not only direct competitors like other EMS training studios but also businesses that provide alternative fitness solutions that could draw potential customers away from Body20. This clause aims to prevent franchisees from engaging in businesses that directly undermine the Body20 brand by offering comparable services or products.
Finally, the definition includes any entity that grants franchises or licenses for any of the aforementioned businesses. This provision is crucial because it prevents a Body20 franchisee from becoming involved with or operating a competing franchise system, either as a franchisor or a franchisee. This ensures that franchisees remain fully committed to the Body20 system and do not divert resources or expertise to competing brands. This multifaceted definition is designed to safeguard Body20's market share and prevent conflicts of interest among its franchisees.