Geographically, where are Body20 franchisees and their Owners prohibited from engaging in Competitive Businesses during the term of the franchise agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| Franchisee Party owns the Site, we may elect to purchase the Site, or lease the Site, from that Franchisee Party. If the Site is leased from an unaffiliated lessor, you must, at our option, cause the applicable Franchisee Party to assign the lease to us or enter into a sublease with us on the same terms. | |||
| p. | Death or disability of franchisee | Section 13.8 | Executor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. |
| q. | Non-competition covenants during the term | Section 12.1 | You and your Owners may not: (A) own, manage, engage in, be employed by, advise, make loans to, or have any other interest in (i) any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business, (ii) any business that offers fitness training or products, services, or Sessions that are similar to those offered by a Studio, or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii) (a "Competitive Business") 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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 56–64)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees and their owners are restricted from engaging in any Competitive Business within the United States. Specifically, they cannot own, manage, be employed by, advise, make loans to, or have any interest in any gymnasium, studio, athletic or fitness center, health club, exercise, aerobics facility, or similar fitness or exercise facility or business. This also includes businesses that offer fitness training or products, services, or sessions similar to those offered by a Body20 studio, or any entity that grants franchises or licenses for such businesses.
This non-compete clause extends to preventing franchisees from diverting or attempting to divert any business or customers from the Body20 studio to any Competitive Business, either directly or indirectly. Franchisees are also prohibited from performing any act that could be injurious or prejudicial to the goodwill associated with the Body20 marks and system. Additionally, they cannot use any vendor relationships established through their association with Body20 for purposes other than purchasing products or equipment for use or retail sale in the studio.
After the franchise agreement expires or is terminated, the restrictions change. For two years following the termination or expiration, the franchisee and their owners are subject to the same restrictions, but the geographic scope for certain activities is limited. The restrictions on owning, managing, or engaging in a Competitive Business and diverting customers are limited to any Competitive Business located within a 10-mile radius of the former Body20 studio or any other Body20 studio that is operating or under development at that time. This means that while the initial restriction covers the entire United States, the post-term restriction is much more localized.