What is the effect of Body20 accepting a site selected by the franchisee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Site. Your franchise is for the specific Site that we approve. You must select a site that we have accepted within the non-exclusive Site Selection Area that we specify. Your Site Selection Area is not exclusive and is only intended to give you a general indication of the area within which you may locate the Site for the Studio. The site will be added to the Franchise Agreement once we accept it and you secure it.
Limited Territorial Protection. Once you have selected, and we have accepted, a Site in the Site Selection Area, and you have secured the Site, we will provide you an area in which you will have protected rights (the "Territory"). The size of your Territory may vary from the territory granted to other franchisees based on the location and demographics surrounding your Studio. Typically, the territory will be a geographic area encompassing (i) a population of approximately 50,000 people surrounding the applicable Studio or (ii) a two-mile radius from the front door of the Studio, whichever includes fewer people. However, in very high-density urban markets having a population above one million people, we might not provide any territory at all or might reduce the territory to no more than a city block. The sources we use to determine the population within your Territory will be publicly available population information (such as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
You will not receive an exclusive territory. You may face competition from other franchisees, outlets that we own, or other channels of distribution or competitive brands that we control.
Except as described below and for Non-Traditional Locations (defined below), we and our affiliates will not open, or license a third party to open, a Studio within your Territory. Except as stated in the preceding sentence, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area, at any location, regardless of the proximity to or effect on your Studio. For example, we and our affiliates have the right to:
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, once Body20 accepts a site selected by the franchisee within a specified non-exclusive Site Selection Area, and the franchisee secures the site, Body20 will grant the franchisee a Territory. This Territory provides the franchisee with protected rights. The size of the Territory can vary compared to other franchisees, depending on the location and demographics surrounding the Body20 studio. Typically, the territory will encompass either a population of approximately 50,000 people surrounding the studio or a two-mile radius from the studio's front door, whichever includes fewer people. However, in very high-density urban markets with a population above one million, Body20 might not provide any territory or might reduce it to no more than a city block.
It is important to note that the franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, outlets that Body20 owns, or other channels of distribution or competitive brands that Body20 controls. Except for Non-Traditional Locations, Body20 and its affiliates will not open, or license a third party to open, a Body20 studio within the franchisee's Territory. However, Body20 and its affiliates retain the right to conduct any business activities, under any name, in any geographic area, regardless of the proximity to or effect on the franchisee's studio, with the exception of the aforementioned clause.
For a prospective Body20 franchisee, this means that while site selection is a collaborative process, final approval rests with Body20. Securing an accepted site is the trigger for establishing the franchisee's Territory, which defines the area where Body20 provides limited protection against direct competition from other Body20 franchises. However, franchisees must be aware that this protection is not exclusive and is subject to several limitations, including competition from other channels and the potential for reduced or nonexistent territories in densely populated urban areas. Franchisees should carefully consider the demographic factors and competitive landscape within their Site Selection Area before committing to a location.