After the Body20 association ends, what geographic area is considered when determining if a Competitive Business is too close?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you will be subject to the same restrictions as in Section 4, except the restrictions in Sections 4(a) and 4(b) will be geographically limited to any Competitive Business that is located within a 10-mile radius of our Studio or any other Studio that is operating or under development at the time your association with us ends.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, for two years after the franchise relationship ends, the franchisee is restricted from engaging in a Competitive Business within a specific geographic area. This area is defined as any Competitive Business located within a 10-mile radius of the former Body20 studio or any other Body20 studio that is operating or under development at the time of termination. This restriction applies regardless of the reason for the end of the association.
This non-compete clause prevents a former franchisee from directly competing with Body20 in close proximity to existing or planned studios. The definition of a "Competitive Business" is broad, encompassing various types of fitness facilities and businesses offering similar training or services to Body20. This means a franchisee cannot own, manage, or be involved with such a business within the specified radius.
The 10-mile radius is a common restriction in franchise agreements to protect the brand's market share and customer base. Prospective franchisees should carefully consider this restriction, especially if they plan to remain in the same geographic area after leaving the Body20 system. It is important to understand the density of existing and planned Body20 studios in the area to assess the potential impact of this non-compete clause.
Body20 also has remedies available if a franchisee breaches the agreement. Body20 is entitled to injunctive relief (without posting bond) as well as a suit for damages.