If an owner's relationship with a Body20 franchisee terminates before the franchise agreement, when does the non-compete period begin for the owner?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 After Termination, Expiration, or Transfer. For two years after the expiration or termination of this Agreement or an approved Transfer to a new franchisee, you and your Owners will be subject to the same restrictions as in Section 12.1 (During Term), except the restrictions in Section 12.1(a) and 12.1(b) shall be geographically limited to any Competitive Business that is located within a 10-mile radius of your former Studio or any other Studio that is operating or under development at the time of such expiration, termination, or Transfer. With respect to the Owners, the time period in this Section 12.2 will run from the expiration, termination, or Transfer of this Agreement or from the termination of the Owner's relationship with you, whichever occurs first.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, both the franchisee and their owners are subject to non-compete restrictions. During the term of the franchise agreement, these individuals are restricted from engaging in any competitive business.
For a period of two years after the expiration, termination, or transfer of the Body20 franchise agreement, the franchisee and their owners face the same restrictions as during the term. However, after termination, the geographic scope is limited to any competitive business within a 10-mile radius of the former Body20 studio or any other Body20 studio operating or under development at the time of expiration, termination, or transfer.
With respect to the owners, the two-year non-compete period begins from the expiration, termination, or transfer of the franchise agreement, or from the termination of the owner's relationship with the franchisee, whichever occurs first. This means that if an owner's relationship with the Body20 franchisee ends before the franchise agreement is terminated, the owner's non-compete period starts from the date their relationship with the franchisee ends, not when the franchise agreement itself expires or is terminated.