During the association with Body20, is a franchisee allowed to divert business to a Competitive Business?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 During Term. You acknowledge that you will receive valuable, specialized training and confidential information regarding the manufacturing, operational, sales, promotional, and marketing methods of us and the Brand. During the Term, you and your Owners must not, without our prior written consent, either directly or indirectly, for themselves, or through, on behalf of, or in conjunction with any other person or Entity:
- (a) own, manage, engage in, be employed by, advise, make loans to, lease or sublease space to, or have any other interest in any competitive business, as such term is defined in Schedule A (a "Competitive Business") at any location 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 indire
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, during the term of the agreement, franchisees are prohibited from diverting business to a Competitive Business. A franchisee and their owners cannot, without prior written consent from Body20, directly or indirectly own, manage, engage in, be employed by, advise, make loans to, lease or sublease space to, or have any other interest in any Competitive Business at any location in the United States.
Furthermore, franchisees are restricted from diverting or attempting to divert any business or customer or potential business or customer of the Body20 studio to any Competitive Business, whether through direct or indirect inducement or otherwise. They are also prohibited from performing, directly or indirectly, services for a Competitive Business.
A Competitive Business is defined as (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, and/or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii). This non-compete clause ensures that franchisees remain fully committed to the success of their Body20 studio and do not use the franchisor's confidential information and training to benefit a competing business during the term of their agreement.