What must a Body20 franchisee do with Intellectual Property upon termination of the franchise agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
tion 15.2: (i) are true liquidated damages; (ii) are intended to compensate us for the harm we will suffer; (iii) are not a penalty; (iv) are a reasonable estimate of our probable loss resulting from your defaults, viewed as of the termination date; and (v) will be in addition to all other rights we have to obtain legal or equitable relief. We have the right to set off any credits, balances or amounts we owe to you against the amounts you owe under this Section 15.2.Discontinue Use of the System and the Intellectual Property. You must immediately cease using, by advertising or in any other manner, (i) the Intellectual Property (including, without limitation, the Marks and the Trade Dress), (ii) the System and all other elements associated with the System, and (iii) any colorable imitation of any of the Intellectual Property or any trademark, service mark, trade dress, or commercial symbol that is confusingly 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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, upon termination of the franchise agreement, franchisees must immediately stop using all of Body20's intellectual property. This includes the Marks, Trade Dress, the System, and any confusingly similar imitations. This cessation of use extends to all forms of advertising and any other manner of representation.
Furthermore, the franchisee is obligated to return all proprietary information to Body20 at the franchisee's expense. This includes both physical and electronic copies of proprietary information such as manuals, customer information, and materials bearing Body20's marks. All other materials related to the studio's operation must also be returned. If any of this information is stored on computer systems, email accounts, or other digital storage, the franchisee must immediately erase these copies.
Additionally, all rights to use Body20's intellectual property automatically revert back to Body20 without any cost to them and without the need for any additional documentation. The franchisee also agrees to execute any documents that Body20 requires to confirm this reversion. This ensures that Body20 maintains complete control over its brand and operational methods after a franchise agreement ends. These requirements are typical in franchise agreements to protect the brand and system-wide consistency.