factual

What is the Body20 franchisee's obligation regarding compliance with laws and regulations?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

You and your Owners must comply with the covenant not to compete in Section 12 (Noncompete Covenants) and the non-disparagement covenant in Section 17.12 (Non-Disparagement).

  • 15.12 Injunctive and Other Relief.

You acknowledge that your failure to abide by the provisions of this Section 15 (Your Obligations Upon Expiration or Termination) will result in irreparable harm to us, and that our remedy at law for damages will be inadequate.

Accordingly, you agree that if you breach any provisions of this Section 15, we are entitled to injunctive relief (including the remedy of specific performance) in addition to any other remedies available at law or in equity.

  • 15.13 Covenant of Further Assurances.

You must execute any legal document or termination agreement that we prescribe to effectuate the termination of this Agreement and shall furnish to us, within 30 days after the effective date of termination, written evidence satisfactory to us of your compliance with all of the foregoing obligations.

Section 16 Dispute Resolution and Governing Law.

16.1 Governing Law. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Except to the extent governed by the Federal Arbitration Act or other federal law, this Agreement will be governed by, construed, and enforced in accordance with the laws of the State of Delaware, without regard to its conflict of laws principles, except that any state law (a) regulating the sale of franchises, licenses, or business opportunities, (b) governing the relationship of a franchisor and its franchisee, or (c) involving

unfair or deceptive acts or practices will not apply unless its jurisdictional requirements are met independently without reference to this Section.

Source: Item 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to the 2025 Body20 Franchise Disclosure Document, franchisees and their owners must comply with the non-compete covenants outlined in Section 12 and the non-disparagement covenant in Section 17.12 of the franchise agreement.

Body20 franchisees acknowledge that failure to comply with Section 15, which details obligations upon expiration or termination of the franchise agreement, will cause irreparable harm to Body20. In such cases, Body20 is entitled to injunctive relief, including specific performance, in addition to any other legal or equitable remedies available.

Furthermore, Body20 franchisees must execute any legal document or termination agreement prescribed by Body20 to effectuate the termination of the agreement. Within 30 days after the termination date, franchisees must provide written evidence satisfactory to Body20 demonstrating their compliance with all obligations.

Except as governed by the Federal Arbitration Act or other federal law, the franchise agreement is governed by the laws of Delaware, without regard to its conflict of laws principles. However, any state law regulating the sale of franchises, governing the franchisor-franchisee relationship, or involving unfair or deceptive acts or practices will not apply unless its jurisdictional requirements are met independently.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.