Can Body20 acquire companies with existing businesses inside a franchisee's Body20 territory?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to acquire other companies with existing businesses, even if those businesses are located within a franchisee's territory. Specifically, Body20 can acquire, be acquired by, or merge with other companies that have existing studios or businesses, regardless of their location.

Even if these acquired businesses are located within a franchisee's territory, Body20 has the discretion to (i) convert the acquired businesses to the Body20 brand, (ii) allow them to continue operating under another name, or (iii) permit them to operate under another name and convert existing Body20 studios to that other name. This clause gives Body20 considerable flexibility in how it integrates acquired businesses into its existing network, which could potentially alter the competitive landscape within a franchisee's territory.

This right is one of several exceptions to any territorial protection a Body20 franchisee might expect. Body20 also reserves the right to establish or license studios at Non-Traditional Locations (such as gyms, cruise ships, or airports) and to sell products or services through alternative channels like e-commerce, even within a franchisee's territory. While the FDD states that a franchisee's exclusive rights in their territory will not be modified as long as they comply with the Franchise Agreement, this is subject to mutual written agreement between both parties, and does not override Body20's rights regarding acquisitions.