What must a Body20 franchisee do with proprietary information, manuals, and customer information upon termination of the franchise agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ue 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. 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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee faces several requirements regarding proprietary information. The franchisee must immediately return to Body20, at their own expense, all hard copies and electronic copies of proprietary information, including manuals and customer information, as well as any materials bearing Body20's trademarks. This includes all other manuals, records, files, instructions, correspondence, and other materials related to the studio's operation that are in the possession of any franchisee party.
Furthermore, if the franchisee or its owners have copies of the proprietary information, proprietary software, or other materials on their computer systems, email accounts, or other digital storage systems, they are obligated to erase these copies immediately. To ensure compliance, the franchisee must provide Body20 with a certification attesting that all copies of the proprietary information, proprietary software, and other materials under their control or the control of their officers, directors, owners, employees, agents, and representatives have been either returned or destroyed as required.
Following the termination of the agreement, the franchisee parties are prohibited from using any proprietary information or profiting from it in any way. This includes selling or trading the information. Additionally, the franchisee must cease using the intellectual property, the Body20 system, and any confusingly similar imitations of the intellectual property, trademarks, service marks, trade dress, or commercial symbols. This ensures that the franchisee no longer identifies with the Body20 brand and system after the agreement ends.