Does Body20's definition of 'Proprietary Information' include knowledge of the operating results of other studios?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that prior to or during the Term, we may disclose in confidence to you, either orally or in writing, certain trade secrets, know-how, and other confidential information relating to the System, our business, the businesses of our franchisees, our vendor relationships, our Sessions, or the construction, management, operation, or promotion of the Studio (collectively, "Proprietary Information"), including (i) site selection criteria and methodologies; (ii) methods, formats, systems, System Standards, sales and marketing techniques, knowledge and experience used in developing and operating Studios, including information in the Manuals; (iii) marketing research and promotional, marketing, advertising, public relations, customer relationship management and other brand-related materials and programs for Studios; (iv) knowledge of specifications for and suppliers of, and methods of ordering, certain items that Studios use and/or sell; (v) knowledge of the operating results and financial performance of other Studios; (vi) customer communication and retention programs, along with data used or generated in connection with those programs; and (vii) any other information we reasonably designate from time to time as confidential or proprietary. "Proprietary Information" does not include (a) information that is part of the public domain or becomes part of the public domain through no fault of you, (b) information disclosed to you by a third party having legitimate and unrestricted possession of such information, or (c) information that you can demonstrate by clear and convincing evidence was within your legitimate and unrestricted possession when the parties began discussing the sale of the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the definition of "Proprietary Information" does include knowledge of the operating results and financial performance of other Body20 studios. This means that Body20 may share confidential information about the financial performance of existing franchises with new franchisees.
As a Body20 franchisee, you would be obligated to protect this information and only use it to operate your studio. You are not allowed to disclose this information to anyone outside of your professional advisors or employees who need it to perform their duties.
Unauthorized use or disclosure of this proprietary information could result in liability to Body20. Franchisees must take reasonable precautions to protect this information, including implementing any required systems, procedures, or training programs. Body20 may also require individuals with access to the information to sign non-disclosure agreements.