Can Body20 acquire companies with existing studios inside the Territory and convert them to the Body20 brand?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) acquire, be acquired by, or merge with other companies with existing studios or businesses anywhere (including inside or outside of the Territory) and, even if such businesses are located in the Territory, (i) convert the other businesses to the Brand, (ii) permit the other businesses to continue to operate under another name, and/or (iii) permit the businesses to operate under another name and convert existing Studios to such other name.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 and its affiliates possess the right to acquire, be acquired by, or merge with other companies that have existing studios or businesses, regardless of their location, including within a franchisee's Territory.
Specifically, Body20 has the right to convert these acquired businesses to the Body20 brand, allow them to continue operating under another name, or permit them to operate under another name and convert existing studios to that other name. This clause gives Body20 considerable latitude to consolidate or expand its market presence, even within a franchisee's protected territory, through acquisitions and mergers.
For a prospective Body20 franchisee, this means that while they may be granted a Territory, Body20 retains the right to acquire competing businesses within that Territory. These acquired businesses could then be rebranded as Body20 studios or continue operating under a different name, potentially increasing competition within the franchisee's Territory. This is a significant factor for franchisees to consider, as it could impact their market share and profitability.