factual

After the Body20 association ends, for how long is a franchisee subject to non-compete restrictions?

Body20 Franchise · 2025 FDD

Answer 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, franchisees are subject to non-compete restrictions for two years after the termination, expiration, or transfer of the Franchise Agreement. During this two-year period, the franchisee and their owners are restricted from involvement in any competitive business within a 10-mile radius of their former Body20 studio or any other Body20 studio that is operating or under development at the time of termination, expiration, or transfer. This includes restrictions on owning, managing, being employed by, advising, making loans to, or leasing space to a competitive business.

The restrictions also prevent franchisees from diverting or attempting to divert business or customers from the Body20 studio to any competitive business. Additionally, franchisees are prohibited from performing any act that is injurious or prejudicial to the goodwill associated with the Body20 marks and the Body20 system. They are also barred from using any vendor relationships established through their association with Body20 for purposes other than purchasing products or equipment for use or retail sale in the Body20 studio.

For owners, the two-year restriction period begins from the expiration, termination, or transfer of the Franchise Agreement or from the termination of the owner's relationship with the franchisee, whichever occurs first. This non-compete agreement aims to protect Body20's market and confidential information by preventing former franchisees from using their knowledge and resources gained during their franchise term to compete against the Body20 system within a specific geographic area for a defined period.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.