Besides other franchisees, what other sources of competition might a Body20 franchisee face?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
re than a city block. The sources we use to determine the population within your Territory will be publicly available population information (such as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
You will not receive an exclusive territory. You may face competition from other franchisees, outlets that we own, or other channels of distribution or competitive brands that we control.
Except as described below and for Non-Traditional Locations (defined below), we and our affiliates will not open, or license a third party to open, a Studio within your Territory. Except as stated in the preceding sentence, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area, at any location, regardless of the proximity to or effect on your Studio. For example, we and our affiliates have the right to:
- (1) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory. A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multi-unit residential properties, and other similar captive market locations;
- (2) establish, or license others to establish, studios or businesses offering similar or identical products, services, classes, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory, or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
- (3) sell or offer, or license others to sell or offer, any products, services, or Sessions using the Marks or other marks through any alternative distribution channels, including through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Territory;
- (4) advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside of the Territory; and
- (5) acquire, be acquired by, or merge with other companies with existing studios or businesses anywhere (including inside or outside of the Territory) and, even if such businesses are located in the Territory, (i) convert the other businesses to the Brand, (ii) permit the other businesses to continue to operate under another name, and/or (iii) permit the businesses to operate under another name and convert existing Studios to such other name.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee may encounter competition from several sources. Specifically, Body20 franchisees could face competition from outlets that Body20 owns, or from other channels of distribution or competitive brands that Body20 controls. This means that even within a franchisee's territory, Body20 itself can operate competing businesses or distribute its products through other avenues.
Furthermore, Body20 and its affiliates retain the right to establish studios or businesses offering similar services under different names and marks, both inside and outside the franchisee's territory. They can also sell products and services through alternative distribution channels like e-commerce or retail stores, regardless of the franchisee's territory. Body20 also has the right to acquire or merge with other companies that have existing studios, even within a franchisee's territory, and may choose to convert those businesses to the Body20 brand or allow them to operate under a different name.
Additionally, Body20 may establish or license others to operate studios at Non-Traditional Locations such as big box gyms, cruise ships, military bases, college campuses, airports, and other similar venues, even within the franchisee's territory. These Non-Traditional Locations can draw customers who might otherwise visit the franchisee's studio. These competitive activities could impact a franchisee's business, and Body20 is not obligated to compensate the franchisee for any adverse effects resulting from these activities within their territory.
Given these potential sources of competition, prospective Body20 franchisees should carefully consider the implications for their business. Understanding the extent to which Body20 and its affiliates can operate competing businesses or alternative distribution channels within or near their territory is crucial for assessing the potential risks and opportunities of investing in a Body20 franchise.