Are Body20 franchisees allowed to perform any act that is injurious to the franchise?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| Franchisee Party owns the Site, we may elect to purchase the Site, or lease the Site, from that Franchisee Party. If the Site is leased from an unaffiliated lessor, you must, at our option, cause the applicable Franchisee Party to assign the lease to us or enter into a sublease with us on the same terms. | |||
| p. | Death or disability of franchisee | Section 13.8 | Executor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. |
| q. | Non-competition covenants during the term | Section 12.1 | You and your Owners may not: (A) own, manage, engage in, be employed by, advise, make loans to, or have any other interest in (i) any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business, (ii) any business that offers fitness training or products, services, or Sessions that are similar to those offered by a Studio, or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii) (a "Competitive Business") in the United States; (B) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise; (C) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or (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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from performing any action that could harm the franchise's goodwill. Specifically, during the term of the Franchise Agreement, franchisees and their Owners cannot perform any act that is injurious or prejudicial to the goodwill associated with the Marks and the System. This restriction is outlined in Section 12.1 of the Franchise Agreement.
This provision means that Body20 franchisees must be careful to avoid any behavior or business practices that could negatively impact the brand's reputation. This could include things like providing poor customer service, engaging in unethical business practices, or publicly disparaging the Body20 brand. The restriction aims to protect the overall value and reputation of the Body20 franchise system.
Furthermore, this restriction extends beyond just the franchisee themselves to include their Owners, ensuring that all parties with a significant stake in the franchise are held accountable for protecting the brand's goodwill. This non-compete agreement is in place to ensure that franchisees remain committed to the success and positive image of the Body20 brand during the term of their agreement.