Does a Body20 franchisee receive an exclusive territory under the Development Agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Limited Territorial Protection. You will not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. If you (and your Affiliated Entities, as applicable) are fully complying with your (and their) obligations under the Development Agreement, the initial franchise agreement executed thereunder, and all other franchise agreements then in effect between us and you (and your Affiliated Entities, as applicable), during the term of the Development Agreement, we (and our affiliates) will not except with respect to Studios proposed to be located at or within "Non-Traditional Locations" establish or operate, or license third parties to establish or operate, Studios that have their physical locations within the Development Area. There are no other restrictions on our and our affiliates' activities in the Development Area during the term of the Development Agreement. We (and our affiliates) reserve the right without any restrictions whatsoever to pursue and establish, or franchise or license others to pursue and establish, Studios to be located at or within Non-Traditional Locations having their physical locations within the Development Area.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory under the Development Agreement. While a franchisee may develop and operate multiple studios within a designated Development Area, Body20 retains the right to establish or license others to establish studios at Non-Traditional Locations within that same Development Area. These Non-Traditional Locations include venues like big box gyms, cruise ships, military bases, college campuses, and airports. This means that even within a franchisee's Development Area, Body20 could potentially authorize another Body20 studio in a location that might draw customers away from the franchisee's studios.
This lack of exclusivity means that Body20 franchisees may face direct competition from other Body20 locations within their Development Area, specifically those in Non-Traditional Locations. Additionally, franchisees may face competition from other franchisees, from outlets that Body20 owns, or from other channels of distribution or competitive brands that Body20 controls. This competitive environment underscores the importance of selecting suitable sites and effectively marketing the Body20 studio to attract and retain customers.
Despite the non-exclusive nature of the Development Area, Body20 provides a limited territorial protection. If the franchisee is fully compliant with all agreements, Body20 will not establish or operate, or license third parties to establish or operate, studios with physical locations within the Development Area, except for those at Non-Traditional Locations. This offers some level of assurance that Body20 will not directly compete with the franchisee's studios in standard locations within the Development Area, as long as the franchisee remains in good standing with the company. However, Body20 retains the right to engage in any other activities within the Development Area, including those activities they reserve the right to engage in under the Franchise Agreement.
Prospective Body20 franchisees should carefully consider the implications of this non-exclusive territory, especially the potential for competition from Non-Traditional Locations within their Development Area. Understanding the demographics and market conditions within the Development Area is crucial for making informed decisions about site selection and business strategy. Franchisees should also maintain compliance with all agreements to ensure they receive the limited territorial protection offered by Body20.