Can Body20 establish studios at Non-Traditional Locations inside the franchisee's 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;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 and its affiliates retain the right to establish or license Body20 studios at Non-Traditional Locations, even within a franchisee's designated 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.
This definition includes locations such as 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, transportation facilities, travel plazas, casinos, hospitals, and multiunit residential properties. This means that even though a franchisee may have a protected territory, Body20 can still operate or allow others to operate Body20 studios within these types of locations inside that territory.
For a prospective franchisee, this clause represents a significant limitation on their territorial protection. While they are granted an exclusive territory for traditional locations, Body20 reserves the right to compete within that same area through Non-Traditional Locations. This could potentially impact the franchisee's customer base and revenue. It is important for potential franchisees to consider the prevalence of such Non-Traditional Locations within their territory when assessing the potential market and financial viability of a Body20 franchise.