Can Body20 establish businesses offering similar services under different names inside my Body20 territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) establish, or license others to establish, studios or businesses offering similar or identical products, services, classes, 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;
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.
Currently, we anticipate offering on-demand subscriptions, retail products, and teacher training programs under the Marks or other marks, but we and our affiliates reserve the right to conduct any of the aforementioned activities.
As long as you are in compliance with the Franchise Agreement, your exclusive rights in the Territory will not be modified for any reason, except by mutual written agreement signed by both parties.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has broad rights to operate businesses, including those offering similar services under different names, within a franchisee's territory. Specifically, Body20 can establish or license others to establish studios or businesses offering similar products, services, classes, and programs using the Body20 system or elements of it under names, symbols, or marks other than the Body20 marks anywhere, including inside and outside the franchisee's territory. This means that even within a franchisee's protected territory, Body20 could potentially operate or allow others to operate competing businesses under different branding.
This has significant implications for prospective Body20 franchisees. While franchisees are granted a Territory, this protection is limited. Body20 retains the right to introduce competition within that territory through businesses with different names or branding. This could dilute a franchisee's market share and revenue potential. The FDD also states that Body20 and its affiliates can engage in any business activities, under any name, in any geographic area, regardless of the proximity to or effect on your Studio.
Furthermore, Body20 reserves the right to offer on-demand subscriptions, retail products, and teacher training programs under the Body20 marks or other marks. These alternative distribution channels could also compete with a franchisee's business within their territory. The document clarifies that the franchisee's exclusive rights in the Territory will not be modified as long as the franchisee is in compliance with the Franchise Agreement, except by mutual written agreement. However, this does not prevent Body20 from operating similar businesses under different names.
Given these terms, prospective franchisees should carefully consider the potential for competition from Body20 itself or its licensees within their territory. It would be prudent to discuss with Body20 the specific plans for alternative brands or distribution channels in the franchisee's target market. Understanding the potential competitive landscape is crucial for assessing the viability and profitability of a Body20 franchise.