After the Body20 association ends, what is the geographic scope of the non-compete restrictions?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 After Termination, Expiration, or Transfer. For two years after the expiration or termination of this Agreement or an approved Transfer to a new franchisee, you and your Owners will be subject to the same restrictions as in Section 12.1 (During Term), except the restrictions in Section 12.1(a) and 12.1(b) shall be geographically limited to any Competitive Business that is located within a 10-mile radius of your former Studio or any other Studio that is operating or under development at the time of such expiration, termination, or Transfer. With respect to the Owners, the time period in this Section 12.2 will run from the expiration, termination, or Transfer of this Agreement or from the termination of the Owner's relationship with you, whichever occurs first.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the non-compete restrictions following the end of the franchise agreement extend to a 10-mile radius. Specifically, for two years after the agreement expires, terminates, or is transferred, the franchisee is restricted from engaging in a Competitive Business within a 10-mile radius of their former Body20 studio or any other Body20 studio operating or under development at the time of termination, expiration, or transfer. This restriction applies to both the franchisee and their Owners. For Owners, the two-year period begins either at the end of the franchise agreement or when the Owner's relationship with the franchisee ends, whichever comes first.
This means that a former Body20 franchisee cannot own, manage, work for, advise, make loans to, or lease space to any business that competes with Body20 within that 10-mile radius. They are also prohibited from diverting or attempting to divert Body20 customers to a competing business within that area. The definition of a "Competitive Business" is broad, including gyms, fitness centers, or any business offering similar fitness training or classes.
This non-compete clause is designed to protect Body20's market share and confidential business information. The 10-mile radius is a fairly standard restriction in the franchise industry, intended to prevent former franchisees from directly leveraging their knowledge and customer relationships gained during their time with Body20 to start a competing business nearby. Prospective franchisees should carefully consider this restriction and its potential impact on their future business opportunities before investing in a Body20 franchise.