Are Body20 franchisees allowed to permit any entity to disclose proprietary information?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Studio (collectively, "Proprietary Information"). You may not, nor may you permit any person or Entity to, use or disclose any Proprietary Information (including any portion of the Manuals) to any other person, except to the extent necessary for your employees to perform their functions in the operation of your Studio. You must take reasonable precautions necessary to protect Proprietary Information from unauthorized use or disclosure, including conducting orientation and training programs for your employees to inform them of your obligation to protect Proprietary Information and their related responsibilities and obligations. If we or our affiliates so request, you must obtain from your officers, directors, Owners, Designated Managers, and employees confidentiality agreements in a form satisfactory to us or our affiliates. You will be responsible for any unauthorized disclosure of Proprietary Information by any person to whom you have disclosed Proprietary Information.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 54–55)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from allowing any person or entity to use or disclose proprietary information related to the Body20 studio. The only exception to this rule is when disclosure is necessary for the franchisee's employees to perform their job functions within the studio's operation. This restriction extends to all proprietary information, including any portion of the manuals provided by Body20.
To ensure the protection of proprietary information, Body20 franchisees must take reasonable precautions to prevent unauthorized use or disclosure. This includes implementing orientation and training programs for employees, informing them of their obligations to protect confidential information and their related responsibilities. Furthermore, Body20 or its affiliates may request franchisees to obtain confidentiality agreements from their officers, directors, owners, designated managers, and employees, using a form that is satisfactory to Body20.
Franchisees are held responsible for any unauthorized disclosure of proprietary information by individuals to whom they have disclosed such information. This underscores the importance of carefully managing access to sensitive data and ensuring that all parties with access understand their confidentiality obligations. This is a common practice in franchising to protect the brand's competitive advantage and trade secrets.