What must a Body20 franchisee do with Confidential Information when their association with the franchisor ends?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
singly similar to any of the Marks or the Trade Dress.
- 15.4 Return of Proprietary Information. You must immediately return to us, at your expense, (i) all hard copies and electronic copies (capable of being returned) of the Proprietary Information, including the Manuals and Customer Information, and of materials bearing the Marks; and (ii) all other manuals, records, files, instructions, correspondence, and other materials relating to the operation of the Studio ("Other Materials") in the possession of any Franchisee Party. If Franchisee or its Owners have on their computer systems, e-mail accounts, or other digital storage systems or services copies of the Proprietary Information, any proprietary software, and/or Other Materials, they must immediately erase these copies.
Franchisor must provide us with a certification attesting to the fact that all copies of the Proprietary Information, proprietary software, and Other Materials in Franchisor's control or the control of its officers, directors, Owners, employees, agents, and representatives have been returned or destroyed in accordance with this Section. The Franchisee Parties may not use any Proprietary Information or sell, trade, or otherwise profit in any way from any Proprietary Information at any time following the expiration or termination of this Agreement.
15.5 Cease Identification with Us. You must immediately take, and cause the Franchisee Parties to take, all action required (i) to cancel all assumed name or equivalent registrations relating to your use of the Marks and (ii) to, in accordance with our directions, cancel or transfer to us or our designee all authorized and unauthorized domain names, social media accounts, telephone numbers, post office boxes, and classified and other directory listings relating to, or used in connection with, the Studio or the Marks (collectively, "Identifiers"). You acknowledge that as between any of the Franchisee Parties and us and our Affiliates, we and our Affiliates have the sole rights to and interest in all Identifiers. If you fail to comply with this Section 15.5, you hereby authorize us and irrevocably appoint us or our designee as your attorney-in-fact to direct the telephone company, postal service, registrar, Internet Service Provider, and all listing agencies or providers to transfer such Identifiers to us. The telephone company, the postal service, registrars, Internet Service Providers listing agencies, and other providers may accept such direction by us pursuant to this Agreement as conclusive evidence of our exclusive rights in such Identifiers and our authority to direct their transfer.
15.6 Our Right to Operate.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, if a franchisee's association with Body20 ends for any reason, they must return all records pertaining to Confidential Information to Body20. This includes all authorized or unauthorized copies of Confidential Information that the franchisee may have in their possession or control. The franchisee is explicitly prohibited from retaining any Confidential Information after their association with Body20 concludes.
Confidential Information is defined broadly in the agreement. It includes all manuals, trade secrets, know-how, methods, training materials, information, management procedures, and marketing and pricing techniques related to the Body20 studio, the Body20 system, or Body20's business. It also encompasses all marketing plans, advertising plans, business plans, financial information, member information, employee information, independent contractor information, and other confidential data belonging to Body20, its affiliates, or the franchisee themselves, that the franchisee obtained during their association with Body20.
This obligation extends to ensuring that if the franchisee or its owners have any copies of Proprietary Information, proprietary software, and/or Other Materials on their computer systems, e-mail accounts, or other digital storage systems, they must immediately erase these copies. Body20 must also provide a certification attesting to the fact that all copies of the Proprietary Information, proprietary software, and Other Materials in Body20's control or the control of its officers, directors, Owners, employees, agents, and representatives have been returned or destroyed. The franchisee parties are prohibited from using any Proprietary Information or selling, trading, or otherwise profiting in any way from any Proprietary Information at any time following the expiration or termination of the Franchise Agreement.
These stipulations are typical in franchise agreements to protect the franchisor's proprietary business methods and trade secrets. A prospective Body20 franchisee should understand the breadth of the definition of Confidential Information and ensure they have systems in place to properly manage and return or destroy all such information upon termination or expiration of their franchise agreement.