Does the geographic restriction on competitive businesses after termination of the Body20 franchise agreement apply to any Body20 studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you will be subject to the same restrictions as in Section 4, except the restrictions in Sections 4(a) and 4(b) will be geographically limited to any Competitive Business that is located within a 10-mile radius of our Studio or any other Studio that is operating or under development at the time your association with us ends.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the non-compete clause after the franchise agreement ends restricts franchisees from engaging in competitive businesses within a specific geographic area. Specifically, for two years after the association with Body20 ends, the franchisee is restricted from involvement with a Competitive Business within a 10-mile radius of their former Body20 studio or any other Body20 studio that is operating or under development at the time of termination.
This restriction applies regardless of the reason for the end of the franchise agreement. The definition of a "Competitive Business" is broad, including any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business, any business that offers fitness training or products, services, or classes or training sessions similar to those offered by a Body20 studio, or any entity that grants franchises or licenses for any of these businesses.
This non-compete clause ensures that former Body20 franchisees do not directly compete with existing Body20 locations shortly after leaving the franchise system, protecting Body20's market share and brand reputation. Franchisees should carefully consider this restriction, as it could limit their business opportunities in the fitness industry within a 10-mile radius of any Body20 studio after their franchise agreement terminates.