Does Body20 acknowledge that franchisees have any ownership interest in the Body20 Marks and Trade Dress beyond the nonexclusive license granted in the Franchise Agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1 Marks and Trade Dress.
- (a) Acknowledgements. You acknowledge that we or our Affiliates are the owner of the Marks and the Trade Dress, that you have no interest in the Marks and the Trade Dress beyond the nonexclusive License granted herein, and that, as between us and you, we have the exclusive right and interest in and to the Marks and the Trade Dress and the goodwill associated with and symbolized by them. Upon the expiration or termination of this Agreement, no monetary amount will be attributable to goodwill associated with your activities as a franchisee under this Agreement.
- (b) Rights. Your right to use the Marks and the Trade Dress applies only to the Studio operated at the Site as expressly provided in this Agreement, including advertising related to the Studio. You may only use in your Studio the Marks and the Trade Dress we designate, and only in compliance with written rules that we prescribe from time to time. You may not use any Mark (i) as part of any corporate or legal business name, (ii) with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos we have licensed to you), (iii) in selling any unauthorized services or products, (iv) as part of any domain name, electronic address, metatag, social media account, or otherwise in connection with any website or other electronic medium without our consent, or (v) in any other manner we have not expressly authorized in writing. No materials on which any of the Marks or the Trade Dress appears will be used by you without our prior written approval, which may be revoked at any time upon reasonable notice to you. You must display the Marks in a manner that we specify on signage at the Studio and on all written materials, forms, advertising, promotional materials, supplies, employee uniforms, business cards, receipts, letterhead, contracts, stationary, and other materials we designate.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 franchisees do not acquire any ownership interest in the Body20 Marks and Trade Dress beyond the nonexclusive license granted in the Franchise Agreement. Body20 or its affiliates retain ownership of the Marks and Trade Dress. Franchisees only have the right to use them as expressly provided in the Franchise Agreement for their studio's operation and related advertising.
This means that franchisees are granted a limited, non-exclusive right to use Body20's trademarks and trade dress. This usage is restricted to the specific studio location and must adhere to Body20's prescribed written rules. Franchisees cannot use the Marks in any unauthorized manner, such as part of a corporate name, with modifications, or in domain names without explicit written consent from Body20.
Upon termination or expiration of the Franchise Agreement, franchisees' right to use the Marks and Trade Dress immediately ceases, and no monetary value will be attributed to any goodwill associated with the franchisee's operation. This underscores that all brand equity remains with Body20, not the franchisee. Franchisees must adhere to Body20's specifications for displaying the Marks on signage, materials, and promotional items, ensuring consistent brand representation. This protects Body20's intellectual property and ensures uniform brand standards across all franchise locations.