What is the geographic scope of Body20's right to acquire other companies with existing studios or businesses?

According to Body20's 2025 Franchise Disclosure Document, Body20 has broad rights regarding acquiring other companies with existing studios or businesses. Specifically, Body20 can acquire, be acquired by, or merge with other companies that have existing studios or businesses anywhere, whether inside or outside a franchisee's territory. This includes the right to convert these acquired businesses to the Body20 brand, allow them to continue operating under another name, or convert existing studios to another name, even if these businesses are located within a franchisee's territory. This latitude gives Body20 significant flexibility in expanding its brand and market presence.

This right has several implications for Body20 franchisees. First, Body20 could acquire a competing business within a franchisee's territory and choose not to convert it to a Body20 studio. This would mean the franchisee would face competition from a business that is now under Body20's ownership but operating under a different brand. Second, Body20 could acquire a business outside a franchisee's territory and convert it to a Body20 studio, increasing the brand's overall reach.

While this clause provides Body20 with considerable freedom in its growth strategy, it also introduces a level of uncertainty for franchisees. The value of a Body20 franchise is tied to the brand's strength and market presence, but also to the competitive landscape in the franchisee's territory. Body20's ability to acquire and operate competing businesses, even under different names, could impact a franchisee's market share and profitability. Prospective franchisees should carefully consider this aspect and discuss with Body20 how these acquisition rights might be exercised and what protections, if any, are in place to mitigate potential negative impacts on existing franchisees.