Are Body20 franchisees allowed to use vendor relationships established through the franchise for purposes other than purchasing products for the Studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ans to, lease or sublease space to, or have any other interest in any competitive business, as such term is defined in Schedule A (a "Competitive Business") at any location 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.
- 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.
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 using vendor relationships established through their association with Body20. Specifically, franchisees are prohibited from using these vendor relationships for any purpose other than purchasing products or equipment for use or retail sale in their Body20 studio. This restriction applies during the term of the franchise agreement.
This means a Body20 franchisee cannot leverage the vendor relationships they gain through the franchise for personal business ventures or any other business outside of supplying their Body20 studio. For example, if a franchisee finds a good deal on equipment through a Body20-approved vendor, they cannot purchase that equipment to use in a separate, non-Body20 business.
After the termination, expiration, or transfer of the Franchise Agreement, this restriction remains in place for two years. This prevents former franchisees from immediately capitalizing on vendor relationships they developed during their time with Body20 for a competing business.
The FDD also states that franchisees may not make any sales of products or services outside of the Studio, conduct Sessions or programs outside of the Studio, or use vendor relationships that they establish through their association with Body20 for any other purpose besides the operation of the Studio, unless Body20 consents in writing.