What factors does Body20 primarily base the size of the Development Area on?

According to Body20's 2025 Franchise Disclosure Document, the size of the Development Area is determined by several key factors. These include the number of Body20 studios the franchisee commits to developing, the demographics of the area, distinct market areas within the Development Area, the presence of competitive businesses, and the availability of suitable sites. The Development Area is typically defined as a city, multiple cities, counties, or specific zip codes, and is detailed in the Development Agreement, including a map.

Prospective Body20 franchisees should understand that the franchisor determines the number of studios a franchisee must develop and the deadlines for doing so to maintain their development rights. Each proposed site for a Body20 studio must be approved by the franchisor, and the territory for each studio will be determined based on the franchisor's current standards for sites and territories. Failure to meet the development obligations can result in the termination of the Development Agreement.

It's important to note that the Development Agreement does not grant an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Body20. However, Body20 will not establish or license third parties to establish or operate studios within the Development Area, except for studios located at or within "Non-Traditional Locations," as long as the franchisee is in full compliance with their agreements. This exception for Non-Traditional Locations means Body20 retains the right to establish studios in venues like gyms, cruise ships, military bases, and other similar locations within the franchisee's Development Area.