Can a Body20 franchisee sublicense the Marks or the System to any other person or entity?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You may purchase a Franchise to develop and operate one Studio at a mutually agreed upon site (the "Site") within an area ("Site Selection Area") that we will specify in the Franchise Agreement, which we and you will execute. Under the Franchise Agreement, you will have no obligation, nor any right, to open any additional Studios, nor will you have any right to (a) sublicense the Marks or the System to any other person or entity, (b) use the Marks or the System at any location other than the Site, or (c) use the Marks or the System in any wholesale, ecommerce, or other channel of distribution other than the operation of the Studio at the Site.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from sublicensing the Marks or the System to any other person or entity. The Marks refer to the Brand and associated trademarks, service marks, trade names, signs, designs, artwork, and logos. The System encompasses the prescribed system of specifications and operating procedures, including studio designs, layouts, equipment specifications, the System Website, vendor relationships, software, online booking system, reservation procedures, classes and training sessions, fitness programs, operating procedures, customer service standards, methods, marketing techniques, and the System Standards stated in the operations manuals.
This restriction means that a Body20 franchisee must directly operate the studio at the approved location and cannot delegate the rights and responsibilities of the franchise to a third party. This is a common practice in franchising to maintain brand consistency and quality control. The franchisee's rights to use the Marks and the System are limited to the specific Site outlined in the Franchise Agreement.
This limitation is in place to ensure that Body20 maintains control over its brand and operating standards. By preventing sublicensing, Body20 can ensure that all studios operate according to the established System Standards and that the quality of services remains consistent across all locations. This protects the brand's reputation and ensures customers receive a uniform experience at any Body20 studio.
While franchisees cannot sublicense the Marks or the System, Body20 does offer a Development Agreement for qualified franchisees who want to develop multiple studios within a designated territory. These franchisees can operate their studios directly or through Affiliated Entities, in which the franchisee owns at least 51% of the ownership interests. These Affiliated Entities must also meet Body20's criteria for franchisees and franchisee owners.