Is a Body20 franchisee allowed to sell or transfer customer information?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Ownership of Customer Information. You agree that all Customer Information that you collect in connection with your Studio is deemed to be owned by us, and must be furnished to us at any time that we request it. In addition, we and our Affiliates may, through the Technology System or otherwise, have independent access to Customer Information.
- (c) Use of Customer Information. You have the right to use Customer Information while this Agreement or a successor franchise agreement is in effect, but only to market products and services under the Marks to customers in accordance with the policies that we establish periodically and Applicable Laws. You may not sell, transfer, or use Customer Information for any purpose other than marketing products and services under the Marks. We and our Affiliates may use Customer Information in any manner or for any purpose. You must secure from your actual and prospective customers and others all consents and authorizations, and provide them all disclosures, that Applicable Laws require to transmit Customer Information to us and our Affiliates, and for us and our Affiliates to use that Customer Information, in the manner that this Agreement contemplates.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are restricted in how they can use customer information. Body20 franchisees collect customer information in connection with their studio, but this information is deemed to be owned by Body20 and must be furnished to them upon request. Body20 and its affiliates can independently access customer information through the Technology System or other means.
While franchisees can use customer information, it is specifically for marketing products and services under the Body20 Marks, and this use must align with Body20's established policies and applicable laws. The agreement explicitly prohibits franchisees from selling, transferring, or using customer information for any purpose other than marketing Body20 products and services.
Body20 and its affiliates, however, retain the right to use customer information in any manner or for any purpose. Franchisees are responsible for obtaining all necessary consents and authorizations from customers to allow the transmission and use of their information by Body20 and its affiliates as contemplated in the agreement. This division of rights and responsibilities regarding customer data is a crucial aspect for prospective franchisees to understand, as it dictates how they can engage with and market to their customer base.