What is the consequence for a Body20 franchisee who violates the noncompete covenants?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners must comply with the covenant not to compete in Section 12 (Noncompete Covenants) and the non-disparagement covenant in Section 17.12 (Non-Disparagement).
- 15.12 Injunctive and Other Relief.
You acknowledge that your failure to abide by the provisions of this Section 15 (Your Obligations Upon Expiration or Termination) will result in irreparable harm to us, and that our remedy at law for damages will be inadequate.
Accordingly, you agree that if you breach any provisions of this Section 15, we are entitled to injunctive relief (including the remedy of specific performance) in addition to any other remedies available at law or in equity.
- 15.13 Covenant of Further Assurances.
You must execute any legal document or termination agreement that we prescribe to effectuate the termination of this Agreement and shall furnish to us, within 30 days after the effective date of termination, written evidence satisfactory to us of your compliance with all of the foregoing obligations.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, if a franchisee violates the noncompete covenants, Body20 is entitled to injunctive relief, including specific performance, in addition to any other remedies available at law or in equity. This means Body20 can seek a court order to stop the franchisee from continuing the prohibited activity and compel them to fulfill their obligations under the franchise agreement. This acknowledges that failure to comply with noncompete provisions will cause irreparable harm to Body20, and monetary damages alone would not be sufficient compensation.
During the term of the agreement, franchisees and their owners are prohibited from engaging in any competitive business within the United States, diverting business or customers, performing acts injurious to the goodwill associated with the Body20 marks and system, or using vendor relationships for unauthorized purposes. After termination, expiration, or transfer of the agreement, these restrictions continue for two years, but the geographic scope of the non-compete is limited to a 10-mile radius of the former studio or any other Body20 studio operating or under development.
This clause ensures that Body20 can protect its market and confidential information. The franchisee acknowledges that violating the noncompete agreement will cause irreparable harm to Body20, justifying injunctive relief. The franchisee must also execute any legal document or termination agreement that Body20 requires to effectuate the termination of the agreement and provide written evidence of compliance with all obligations within 30 days after the termination date.