What is the geographic scope of Body20's right to establish studios at Non-Traditional Locations?

According to Body20's 2025 Franchise Disclosure Document, Body20 retains the right to establish, or license others to operate, studios or sessions at Non-Traditional Locations anywhere, both inside and outside a franchisee's territory. A Non-Traditional Location is defined as a site within a larger venue or facility that draws at least 75% of its customers from that larger facility. Examples of Non-Traditional Locations include big box gyms, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, and multi-unit residential properties.

This means that even if a Body20 franchisee is granted a protected territory, Body20 can still establish or license studios within that territory at Non-Traditional Locations. This could create competition for the franchisee within their own territory. The FDD specifies that Body20 and its affiliates reserve the right to establish studios at Non-Traditional Locations even within a Development Area, if a franchisee has signed a Development Agreement.

This lack of territorial exclusivity for Non-Traditional Locations is a significant consideration for potential Body20 franchisees. While a franchisee may have some territorial protection for traditional locations, Body20 retains the right to operate or franchise in Non-Traditional Locations within that same territory. Prospective franchisees should carefully consider the potential impact of this policy on their business and revenue projections. It is important to understand the prevalence of Non-Traditional Locations in the franchisee's target market and how Body20 plans to utilize these locations.