Can a Body20 franchisee use vendor relationships established through the franchise for purposes other than purchasing products for the studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Body20's 2025 Franchise Disclosure Document, franchisees are restricted in how they can use vendor relationships established through their association with the franchise. Specifically, a Body20 franchisee is prohibited from using any vendor relationship established through their association with Body20 for any purpose other than to purchase products or equipment for use or retail sale in the studio. This restriction applies during the term of the franchise agreement.
This means that a franchisee cannot leverage these vendor relationships for personal gain or for any business venture outside of the scope of operating their Body20 studio. For example, a franchisee cannot use a Body20-approved equipment supplier to furnish a personal gym or another unrelated business. This restriction is in place to protect the integrity of the Body20 brand and ensure that vendor relationships are used solely for the benefit of the franchise system.
After the termination, expiration, or transfer of the franchise agreement, this restriction remains in effect for two years. During this period, the franchisee is still prohibited from using vendor relationships established through their association with Body20 for purposes other than purchasing products or equipment for use or retail sale in the studio. This extended restriction further safeguards Body20's interests and prevents former franchisees from unfairly capitalizing on relationships developed during their time with the franchise.