What happens to a Body20 franchisee's rights to use the Intellectual Property upon termination or expiration of the Franchise Agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of this Agreement for any reason, all of your rights to use the Intellectual Property will automatically revert to us without cost and without the execution or delivery of any document.
Upon our request, you will execute all documents that we require to confirm such reversion.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee's rights to use Body20's intellectual property are terminated upon expiration or termination of the Franchise Agreement. All rights to use the intellectual property automatically revert back to Body20 without any cost to them and without needing to execute or deliver any additional documents.
Furthermore, Body20 may request the franchisee to execute documents confirming the reversion of these rights. This includes ceasing all use of the Intellectual Property, the System, and any confusingly similar imitations in advertising or any other manner.
The franchisee is also obligated to return all hard and electronic copies of proprietary information, including manuals, customer information, and materials bearing Body20's marks, at their own expense. This extends to erasing any copies of proprietary information, proprietary software, and other materials from their computer systems, email accounts, or other digital storage systems. These stipulations ensure Body20 maintains control over its brand and proprietary assets after a franchise agreement ends.