After the Body20 association ends, for how long is the franchisee subject to non-compete restrictions?
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, franchisees are subject to non-compete restrictions for two years after their association with Body20 ends, regardless of the reason for termination. These restrictions mirror those in place during the term of the franchise agreement but are geographically limited.
Specifically, the franchisee cannot own, manage, be employed by, advise, make loans to, lease or sublease space to, or have any interest in a Competitive Business within a 10-mile radius of the former Body20 studio or any other Body20 studio operating or under development at the time of termination. The term "Competitive Business" includes gyms, studios, athletic or fitness centers, health clubs, exercise facilities, or businesses offering similar fitness training, products, services, or classes, as well as entities that grant franchises or licenses for such businesses.
Additionally, the franchisee is prohibited from diverting or attempting to divert any business or customers from the Body20 studio to a Competitive Business within that 10-mile radius. They must also refrain from any actions that could harm the goodwill associated with the Body20 marks and system. This non-compete clause aims to protect Body20's market share and proprietary business model by preventing former franchisees from directly competing in the immediate vicinity after their franchise agreement concludes.