What constitutes a 'Competitive Business' according to the Body20 agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) own, manage, engage in, be employed by, advise, make loans to, lease or sublease space to, or have any other interest in (i) any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business, (ii) any business that offers fitness training or products, services, or classes or training sessions that are similar to those offered by a Studio, or (iii) any entity that grants franchises or licenses for any of the businesses in (i) or (ii) (collectively, each, a "Competitive Business") at any location in the United States;
(b) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise;
(c) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or
(d) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined broadly within the franchise agreement to protect Body20's market position. During the term of the agreement, franchisees and their owners are restricted from involvement with businesses that could be seen as competitive. This includes owning, managing, or being employed by any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business.
This definition extends to any business offering fitness training, products, services, classes, or training sessions similar to those offered by a Body20 studio. It also encompasses any entity that grants franchises or licenses for these types of businesses. The agreement explicitly prohibits franchisees from diverting or attempting to divert any business or customers from the Body20 studio to any Competitive Business, whether through direct or indirect means.
Furthermore, franchisees are prohibited from performing any action that could be harmful or prejudicial to the goodwill associated with the Body20 marks and system. They are also restricted from using vendor relationships established through their association with Body20 for any purpose other than purchasing products or equipment for use or retail sale in the studio. These restrictions are in place to ensure that franchisees remain fully committed to the success of their Body20 franchise and do not engage in activities that could undermine the brand or its operations. After the franchise agreement ends, these restrictions continue for a period of two years within a 10-mile radius of the Body20 studio.