Can Body20 establish or license others to operate Studios at Non-Traditional Locations inside the Territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in this Section 1.3 and for Non-Traditional Locations (as defined below), we and our Affiliates will not open, or license a third party to open, a Studio within your Territory.
Except for the foregoing sentence, we and our Affiliates have the right to conduct any business activities, under any name, in any geographic area, and at any location, regardless of the proximity to or effect on your Studio.
For example, without limitation, we and our Affiliates have the right to:
- (a) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory.
A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multiunit residential properties, and other similar captive market locations;
- (b) establish or license franchises and/or company-owned studios or businesses offering similar or identical products, services, Sessions, 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;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to establish or license others to operate studios at non-traditional locations, even within a franchisee's territory. A "Non-Traditional Location" is defined as a site within a larger venue that draws at least 75% of its customers from that venue. Examples include big box gyms, fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multiunit residential properties, and other similar captive market locations.
This means that while a Body20 franchisee may have a protected territory, this protection does not extend to non-traditional locations within that territory. Body20 reserves the right to open or license studios in these locations, which could potentially compete with the franchisee's studio. This is a significant exception to the territorial protection that franchisees should carefully consider.
Furthermore, Body20 also reserves the right to establish or license franchises and/or company-owned studios or businesses offering similar or identical products, services, Sessions, 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. This broad reservation of rights gives Body20 considerable latitude to operate or license competing businesses, even within a franchisee's territory, as long as they do not use the Body20 marks. Prospective franchisees should be aware of these limitations on territorial protection and consider the potential for competition from Body20 or its other franchisees.