Can Body20 acquire a company with existing studios inside my territory and convert them to the Body20 brand?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to acquire other companies with existing studios or businesses, even those located within a franchisee's territory. Body20 can then 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 right is explicitly reserved by Body20 and its affiliates.

This clause has significant implications for prospective Body20 franchisees. Even if a franchisee secures a territory, Body20 retains the ability to introduce competition within that territory by acquiring existing businesses and either converting them to Body20 studios or allowing them to operate under a different brand. This could directly impact the franchisee's potential customer base and revenue.

While the FDD states that a franchisee's exclusive rights in the territory will not be modified as long as they comply with the Franchise Agreement, this protection does not prevent Body20 from acquiring and converting existing businesses within that territory. This highlights a potential risk for franchisees, as Body20's strategic decisions regarding acquisitions could alter the competitive landscape within their designated area. Franchisees should carefully consider this aspect and its potential impact on their investment before entering into a franchise agreement with Body20.