What actions are Body20 franchisees and their Owners prohibited from taking that could divert business or customers to a Competitive Business?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
utor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. | | q. | Non-competition covenants during the term | Section 12.1 | You and your Owners may not: (A) own, manage, engage in, be employed by, advise, make loans to, or have any other interest in (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, or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii) (a "Competitive Business") in the United States; (B) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise; (C) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or (D) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio. | | r.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees and their Owners are restricted from certain activities that could divert business to a competitor. Specifically, they cannot divert or attempt to divert any business, customer, or potential customer of the Body20 studio to a Competitive Business, whether through direct or indirect encouragement or any other means. This restriction is in place to protect Body20's market share and customer base.
Additionally, Body20 franchisees and their Owners are prohibited from performing any action that could be harmful or damaging to the goodwill associated with the Body20 brand, its trademarks, and the Body20 system. They are also not allowed to use any vendor relationships established through their affiliation with Body20 for purposes other than purchasing products or equipment for use or retail sale within the Body20 studio. These measures ensure that franchisees remain committed to the success and integrity of the Body20 brand.
These non-competition covenants are in effect during the term of the Franchise Agreement. After the agreement expires or is terminated, similar restrictions apply for two years. However, post-termination, the restrictions related to owning or engaging with a Competitive Business and diverting customers are geographically limited to any Competitive Business within a 10-mile radius of the former Body20 studio or any other Body20 studio operating or under development at that time. This post-term restriction allows former franchisees to operate similar businesses outside the immediate vicinity of a Body20 location, balancing the franchisee's future opportunities with Body20's need to protect its existing market.