After the Body20 franchise agreement terminates, what is the geographic limit on the restriction against engaging in a competitive business?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you will be subject to the same restrictions as in Section 4, except the restrictions in Sections 4(a) and 4(b) will be geographically limited to any Competitive Business that is located within a 10-mile radius of our Studio or any other Studio that is operating or under development at the time your association with us ends.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, after the franchise agreement ends, a former franchisee faces geographic restrictions regarding competitive businesses. Specifically, for two years after the association with Body20 ends, the franchisee cannot engage in a Competitive Business within a 10-mile radius. This radius is measured from the franchisee's former Body20 studio location or any other Body20 studio operating or under development at the time of termination.
This restriction applies to owning, managing, being employed by, advising, making loans to, leasing space to, or having any interest in a Competitive Business. A Competitive Business includes any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business. It also includes any business that offers fitness training or products, services, or classes or training sessions similar to those offered by a Body20 studio, or any entity that grants franchises or licenses for these types of businesses.
This non-compete clause is a standard practice in franchising to protect the brand and market share of the franchisor. The 10-mile radius aims to prevent former franchisees from directly competing with existing Body20 locations. Franchisees should carefully consider this restriction, as it could limit their business opportunities in the fitness industry within that geographic area for two years after leaving the Body20 system. Prospective franchisees should evaluate the density of Body20 locations in their desired area to understand the potential impact of this clause.