Does Body20 consider the franchisee to have received sufficient consideration for the non-compete covenants?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;
NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
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).
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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the franchise agreement provides that as a condition to Body20 authorizing the franchisee to enter into a lease, the parties must execute a Lease Rider. In consideration of the mutual undertakings and commitments set forth in the Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree to the terms outlined in the Lease Rider.
This means that Body20 considers the mutual promises and obligations within both the Lease Rider and the Franchise Agreement as sufficient consideration for the agreements contained within those documents. This includes the franchisee's agreement to comply with the non-compete covenants outlined in Section 12 of the franchise agreement and the non-disparagement covenant in Section 17.12.
Furthermore, the franchisee acknowledges that failure to abide by the provisions regarding obligations upon expiration or termination of the agreement will result in irreparable harm to Body20, and that Body20's remedy at law for damages will be inadequate. The franchisee agrees that if they breach any of these provisions, Body20 is entitled to injunctive relief, including specific performance, in addition to any other remedies available at law or in equity. This highlights the importance Body20 places on these covenants and the potential legal ramifications for franchisees who violate them.