What document must Body20 Owners sign to personally bind themselves to the noncompete covenants outlined in Section 8?

According to Body20's 2025 Franchise Disclosure Document, Body20 Owners must sign the current form of Payment and Performance Guarantee to personally bind themselves to the noncompete covenants outlined in Section 8 of the agreement. This document is attached as Appendix B to the agreement.

This requirement ensures that the Owners are individually responsible for adhering to the noncompete terms, which restrict their ability to engage in competitive businesses during and after the franchise term. The noncompete covenants in Section 12 of the Initial Franchise Agreement apply to the Owners, with specific geographic limitations extending to the Development Area and a 10-mile radius around it or any other Body20 studio.

By signing the Payment and Performance Guarantee, the Owners acknowledge and agree to be bound by these restrictions, which are designed to protect Body20's business interests and goodwill. This personal guarantee provides Body20 with an additional layer of security, as it can pursue legal action against the Owners individually if they violate the noncompete covenants. This is a common practice in franchising to ensure that all parties with a significant stake in the business are committed to upholding the terms of the franchise agreement.