Does Body20's definition of 'Proprietary Information' include site selection criteria?
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.
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 site selection criteria and methodologies. This means that Body20 considers its methods for choosing locations to be confidential and a trade secret. Franchisees receive this information in confidence and must protect it.
As a Body20 franchisee, you are obligated to keep this information confidential and only use it for operating your studio. You can only disclose it to your professional advisors and employees to the extent necessary for them to perform their duties.
The FDD specifies that unauthorized use or disclosure of this proprietary information would be considered an unfair method of competition, and you would be liable to Body20 for any breaches by your employees or others to whom you disclosed the information. This underscores the importance of maintaining the confidentiality of Body20's site selection methods and criteria.