Is a Body20 franchisee allowed to sublicense the Body20 marks or system?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the terms and conditions of this Agreement, we grant to you a non-exclusive license (the "License") to operate one Studio using the Marks and the System.
You have no right to (i) sublicense the Marks or the System to any other person or Entity, (ii) use the Marks or the System at any location other than the Site, or (iii) to use the Marks or the System in any wholesale, e-commerce, or other channel of distribution besides the operation of the Studio at the Site.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are specifically prohibited from sublicensing the Body20 marks or system to any other person or entity. The franchise agreement grants a non-exclusive license to operate a single studio at a designated site, and this license does not extend to allowing the franchisee to authorize others to use the Body20 brand or operational methods.
This restriction means that a Body20 franchisee must personally manage and control the operations of their studio. They cannot delegate the rights and responsibilities of the franchise to a third party through a sublicense. This is a common provision in franchise agreements, designed to maintain quality control and consistency across the brand.
The franchisee is also restricted from using the Body20 marks or system at any location other than the approved site or through any channels of distribution beyond the studio's operation. This prevents franchisees from expanding the business in unauthorized ways, such as through wholesale or e-commerce, which could potentially dilute the brand or create conflicts with other franchisees or the franchisor.