Does a Body20 franchisee need written consent to be involved with a Competitive Business during their association?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 12 Noncompete Covenants.
- 12.1 During Term. You acknowledge that you will receive valuable, specialized training and confidential information regarding the manufacturing, operational, sales, promotional, and marketing methods of us and the Brand. During the Term, you and your Owners must not, without our prior written consent, either directly or indirectly, for themselves, or through, on behalf of, or in conjunction with any other person or Entity:
- (a) own, manage, engage in, be employed by, advise, make loans to, lease or sublease space to, or have any other interest in any competitive business, as such term is defined in Schedule A (a "Competitive Business") at any location in the United States;
- (b) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise;
- (c) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or
- (d) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio.
- 12.2 After Termination, Expiration, or Transfer. For two years after the expiration or termination of this Agreement or an approved Transfer to a new franchisee, you and your Owners will be subject to the same restrictions as in Section 12.1 (During Term), except the restrictions in Section 12.1(a) and 12.1(b) shall be geographically limited to any Competitive Business that is located within a 10-mile radius of your former Studio or any other Studio that is operating or under development at the time of such expiration, termination, or Transfer. With respect to the Owners, the time period in this Section 12.2 will run from the expiration, termination, or Transfer of this Agreement or from the termination of the Owner's relationship with you, whichever occurs first.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, a franchisee and their owners are restricted from engaging in any competitive business during the term of the agreement without prior written consent from Body20. This restriction applies whether the involvement is direct or indirect, and includes owning, managing, being employed by, advising, making loans to, or leasing space to a competitive business. This non-compete clause extends to any location within the United States.
This means that during the franchise term, a Body20 franchisee cannot have any financial or operational involvement with a business that Body20 considers competitive, unless they obtain explicit written permission from Body20. This is a standard practice in franchising to protect the brand's market position and confidential business information. The definition of what constitutes a 'Competitive Business' is detailed in Schedule A of the Franchise Agreement, which a prospective franchisee should carefully review.
After the termination, expiration, or transfer of the franchise agreement, the franchisee and their owners remain subject to similar restrictions for a period of two years. However, the geographical scope of the restriction is limited to a 10-mile radius of the former Body20 studio or any other Body20 studio operating or under development at the time of termination, expiration, or transfer. This post-term non-compete is designed to prevent franchisees from immediately leveraging their experience and knowledge gained from Body20 to compete against the brand in close proximity.