What is a Body20 franchisee prohibited from doing with Proprietary Information?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
omes part of the public domain through no fault of you, (b) information disclosed to you by a third party having legitimate and unrestricted possession of such information, or (c) information that you can demonstrate by clear and convincing evidence was within your legitimate and unrestricted possession when the parties began discussing the sale of the franchise.
- 10.2 Nondisclosure of Proprietary Information. We and our Affiliates own all right, title, and interest in and to the Proprietary Information. You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, franchisees face specific restrictions regarding the use and disclosure of Proprietary Information. Body20 considers trade secrets, know-how, and confidential details about the System, franchisee operations, vendor relationships, and the construction, management, and promotion of the studio as Proprietary Information. This includes site selection criteria, operating methods, marketing techniques, supplier information, and financial performance data of other studios.
A Body20 franchisee is explicitly prohibited from using or disclosing any Proprietary Information to any person, except when it is essential for their professional advisors and employees to perform their duties in operating the studio. This restriction extends to preventing others from using or disclosing the information. Franchisees must also take reasonable precautions to protect this information from unauthorized use or disclosure, including implementing training programs for employees to emphasize their obligations to protect Proprietary Information.
Furthermore, the FDD states that using Proprietary Information in any business other than the franchised Body20 studio constitutes an unfair method of competition. Franchisees are liable for any unauthorized use or disclosure of Proprietary Information by their employees or anyone else to whom they disclose the information. This underscores the importance of maintaining strict confidentiality and implementing robust protective measures to safeguard Body20's Proprietary Information.
After the franchise agreement expires or terminates, the franchisee is prohibited from using any Proprietary Information or profiting from it in any way. This obligation extends beyond the term of the agreement, highlighting the enduring nature of the confidentiality requirements. Franchisees must also erase any copies of Proprietary Information from their computer systems and provide certification that all copies have been returned or destroyed.