Can Body20 establish studios at Non-Traditional Locations inside my territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ence, 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:
- (1) 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, multi-unit residential properties, and other similar captive market locations;
- (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;
- (3) sell or offer, or license others to sell or offer, any products, services, or Sessions using the Marks or other marks through any alternative distribution channels, including through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Territory;
- (4) advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside of the Territory;
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 retains the right to establish or license others to operate studios or sessions 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, cruise ships, military bases, college campuses, airports, sports venues, hotels, theme parks, office complexes, train stations, travel plazas, casinos, hospitals, and multi-unit residential properties.
This means that even if a Body20 franchisee secures a territory, Body20 can still open or license additional studios within that territory in Non-Traditional Locations. This could create competition for the franchisee, as Body20 can establish studios in locations that might otherwise be within the franchisee's exclusive area. The FDD states that Body20 and its affiliates reserve the right to pursue and establish studios at Non-Traditional Locations within a Development Area, even if the franchisee has a Development Agreement.
This is a significant consideration for potential franchisees, as it limits the exclusivity of their territory. While the franchisee may have protected rights for traditional locations, Body20 retains the right to operate in Non-Traditional Locations within that same territory. Prospective franchisees should carefully consider the potential impact of this clause on their business and revenue projections. It is important to understand the prevalence of Non-Traditional Locations within the desired territory and how this might affect the overall market.
Body20 also retains the right to conduct business activities, under any name, in any geographic area, regardless of the proximity to or effect on your Studio. They can also establish studios or businesses offering similar products or services under names other than the Body20 marks anywhere, including inside and outside of the Territory.