After Body20 defines the Territory, what rights does the franchisee have outside of it?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Once you have selected and we have accepted a Site in the Site Selection Area in accordance with Section 4.1 (Site Selection), we will designate an area within the confines of the Site Selection Area as your protected territory (the "Territory").
You do not have any territorial protection in your Site Selection Area, unless and until we identify your Territory, as explained in Section 4.2 (Definition of the Territory).
Except as provided in this Section 1.3 and for Non-Traditional Locations (as defined below), we and our Affiliates will not open, or license a third party to open, a Studio within your Territory.
Except for the foregoing sentence, we and our Affiliates have the right to conduct any business activities, under any name, in any geographic area, and at any location, regardless of the proximity to or effect on your Studio.
For example, without limitation, we and our Affiliates have the right to:
- (a) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory.
A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multiunit residential properties, and other similar captive market locations;
- (b) establish or license franchises and/or company-owned studios or businesses offering similar or identical products, services, Sessions, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, once Body20 defines a franchisee's territory, the franchisee receives limited territorial protection. Body20 and its affiliates will not open or license a third party to open a studio within the franchisee's territory, except for Non-Traditional Locations.
Outside of the franchisee's territory, Body20 and its affiliates retain the right to conduct any business activities, under any name, in any geographic area, regardless of proximity to or effect on the franchisee's studio. This includes establishing or licensing others to operate studios or sessions under the Body20 marks and system at Non-Traditional Locations both inside and outside the territory. A Non-Traditional Location is defined as a site within a larger venue or facility that draws at least 75% of its customers from that venue, such as gyms, cruise ships, military bases, college campuses, airports, hotels, and casinos.
Furthermore, Body20 reserves the right to establish or license franchises and/or company-owned studios or businesses offering similar or identical products, services, sessions, and programs using the Body20 system or elements of the system. This can be done (i) under the Body20 marks anywhere outside of the territory, or (ii) under names, symbols, or marks other than the Body20 marks anywhere, including inside and outside of the territory. This means that while a franchisee has some protection within their defined territory against other Body20-branded studios, Body20 can still operate or franchise similar businesses under different names, even within the same area.