Is a Body20 franchisee allowed to disclose Proprietary Information to their professional advisors?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, franchisees are permitted to disclose Proprietary Information to their professional advisors. However, this disclosure is explicitly limited to the extent necessary for the advisors to perform their functions in operating the Body20 studio. This means a franchisee can share confidential details with their attorney, accountant, or consultant, but only to the degree required for them to provide relevant advice and services related to the franchise.
The FDD emphasizes that Body20 and its affiliates retain all rights, title, and interest in the Proprietary Information. Franchisees are responsible for any unauthorized use or disclosure of this information by their employees or anyone else to whom they disclose it. This highlights the importance of franchisees ensuring their advisors understand the confidential nature of the information and maintain its secrecy.
This policy is typical in franchising, where protecting trade secrets and confidential business information is crucial for maintaining a competitive advantage and the integrity of the franchise system. Body20 franchisees must take reasonable precautions to protect Proprietary Information and may be required to have anyone with access to it sign non-disclosure agreements. This ensures that the franchisor has recourse if confidential information is mishandled.