Does Body20 consider customer information collected by franchisees to be owned by the franchisor?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or its Owners have on their computer systems, e-mail accounts, or other digital storage systems or services copies of the Proprietary Information, any proprietary software, and/or Other Materials, they must immediately erase these copies.
Franchisor must provide us with a certification attesting to the fact that all copies of the Proprietary Information, proprietary software, and Other Materials in Franchisor's control or the control of its officers, directors, Owners, employees, agents, and representatives have been returned or destroyed in accordance with this Section. The Franchisee Parties may not use any Proprietary Information or sell, trade, or otherwise profit in any way from any Proprietary Information at any time following the expiration or termination of this Agreement.
15.5 Cease Identification with Us. You must immediately take, and cause the Franchisee Parties to take, all action required (i) to cancel all assumed name or equivalent registrations relating to your use of the Marks and (ii) to, in accordance with our directions, cancel or transfer to us or our designee all authorized and unauthorized domain names, social media accounts, telephone numbers, post office boxes, and classified and other directory listings relating to, or used in connection with, the Studio or the Marks (collectively, "Identifiers"). You acknowledge that as between any of the Franchisee Parties and us and our Affiliates, we and our Affiliates have the sole rights to and interest in all Identifiers. If you fail to comply with this Section 15.5, you hereby authorize us and irrevocably appoint us or our designee as your attorney-in-fact to direct the telephone company, postal service, registrar, Internet Service Provider, and all listing agencies or providers to transfer such Identifiers to us. The telephone company, the postal service, registrars, Internet Service Providers listing agencies, and other providers may accept such direction by us pursuant to this Agreement as conclusive evidence of our exclusive rights in such Identifiers and our authority to direct their transfer.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
The 2025 Body20 Franchise Disclosure Document (FDD) addresses the franchisee's obligations regarding proprietary information upon termination of the franchise agreement. Specifically, franchisees must erase all copies of proprietary information, proprietary software, and other materials from their computer systems, email accounts, or other digital storage systems.
Furthermore, upon expiration or termination of the Franchise Agreement, franchisees are prohibited from using any proprietary information or profiting from it in any way. Franchisees must also transfer or cancel all identifiers, including domain names, social media accounts, and telephone numbers, to Body20 or its designee. Body20 asserts that it has sole rights to and interest in all such identifiers.
While the FDD makes it clear that franchisees cannot use or profit from proprietary information after the agreement ends and must transfer digital assets to Body20, it does not explicitly state whether Body20 considers customer information collected during the franchise term to be owned by the franchisor. A prospective franchisee should seek clarification from Body20 regarding the ownership and usage rights of customer data collected during the franchise term to fully understand their obligations and rights.