Does Body20 consider the time, territory, and scope of the non-compete covenants to be reasonable?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.5 Enforcement of Covenants. You acknowledge and agree that (i) the time, territory, and scope of the covenants provided in this Section 12 are reasonable and necessary for the protection of our legitimate business interests; (ii) you have received sufficient and valid consideration in exchange for those covenants; (iii) enforcement of the same would not impose undue hardship; and (iv) the period of protection provided by these covenants will not be reduced by any period of time during which you are in violation of the provisions of those covenants or any period of time required for enforcement of those covenants. To the extent that this Section 12 is judicially determined to be unenforceable by virtue of its scope or in terms of area or length of time but may be made enforceable by reductions of any or all thereof, the same will be enforced to the fullest extent permissible. You agree that the existence of any claim you may have against us, whether or not arising from this Agreement, will not constitute a defense to our enforcement of the covenants contained in this Section 12. You acknowledge that any breach or threatened breach of this Section 12 will cause us irreparable injury for which no adequate remedy at law is available, and you consent to the issuance of an injunction prohibiting any conduct violating the terms of this Section 12. Such injunctive relief will be in addition to any other remedies that we may have.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 franchisees acknowledge and agree that the time, territory, and scope of the non-compete covenants are reasonable and necessary to protect Body20's legitimate business interests. Franchisees also acknowledge that they have received sufficient consideration for these covenants and that enforcing them would not impose undue hardship.
This acknowledgment is significant because it indicates that Body20 believes its non-compete terms are fair and balanced. It also suggests that Body20 is prepared to defend these terms in court if necessary. The FDD states that the period of protection provided by these covenants will not be reduced by any period of time during which the franchisee violates the provisions of those covenants or any period of time required for enforcement of those covenants.
Furthermore, the FDD states that any claim a franchisee may have against Body20 will not be a defense against the enforcement of these covenants. Body20 emphasizes that any breach or threatened breach of the non-compete agreement will cause irreparable injury for which there is no adequate remedy at law, and Body20 is entitled to injunctive relief to prohibit any conduct violating the terms of the non-compete agreement. This injunctive relief is in addition to any other remedies that Body20 may have.