What are the consequences for a Body20 franchisee who discloses Proprietary Information?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
o the Proprietary Information. You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio. You acknowledge that your use of the Proprietary Information in any other business would constitute an unfair method of competition with us and our franchisees. You will be liable to us for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom you disclose Proprietary Information. You will take reasonable precautions to protect the Proprietary Information from unauthorized use or disclosure and will implement any systems, procedures, or training programs that we require.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees face specific repercussions for unauthorized use or disclosure of proprietary information. Body20 defines proprietary information as trade secrets, know-how, and confidential information related to the System, the business, franchisee operations, vendor relationships, sessions, or the construction, management, operation, or promotion of the studio. This includes site selection criteria, methods, formats, systems, System Standards, sales and marketing techniques, knowledge and experience used in developing and operating Studios, information in the Manuals, marketing research and promotional materials, knowledge of specifications for suppliers, operating results and financial performance of other Studios, and customer communication and retention programs.
A Body20 franchisee is responsible for any unauthorized use or disclosure of proprietary information, even if it is done by an employee or another person to whom the franchisee disclosed the information. The franchisee must take reasonable precautions to protect the proprietary information and implement any required systems, procedures, or training programs. Additionally, Body20 may request franchisees to have anyone with access to proprietary information sign non-disclosure agreements that identify Body20 as a third-party beneficiary with the right to enforce the agreement.
The FDD emphasizes that using Body20's proprietary information in any other business would be considered an unfair method of competition. This underscores the importance of maintaining the confidentiality of this information and using it solely for the operation of the Body20 franchise. The franchisee's obligations extend to protecting customer information, including names, contact information, and financial details, and notifying Body20 immediately of any suspected or actual data breaches. The franchisee is responsible for any financial losses or remedial actions resulting from such breaches.