Can Body20 license others to establish studios offering identical services using elements of the Body20 System under names other than the Body20 Marks inside my territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
rtainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multi-unit residential properties, and other similar captive market locations;
- (2) establish, or license others to establish, studios or businesses offering similar or identical products, services, classes, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory, or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
- (3) sell or offer, or license others to sell or offer, any products, services, or Sessions using the Marks or other marks through any alternative distribution channels, including through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Territory;
- (4) advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside of the Territory;
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Body20 has the right to license others to establish studios or businesses offering similar or identical services and using elements of the Body20 System under names other than the Body20 Marks anywhere, including inside and outside of a franchisee's territory. This means that while you may have a protected territory, Body20 can authorize other businesses, not branded as Body20, to offer similar services within your territory, potentially creating competition.
This ability of Body20 to license similar businesses under different names within your territory could impact your potential customer base and revenue. It's important to understand that your territorial protection is limited to other Body20-branded studios, not similar concepts operating under different names. This is a significant factor to consider when evaluating the potential for success in your specific market.
However, Body20 is allowed to establish, or license others to operate, Studios or Sessions operating under the Body20 Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory. A Non-Traditional Location is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, 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, multi-unit residential properties, and other similar captive market locations.
As a prospective franchisee, it is crucial to fully understand the implications of this clause and how it might affect your business. You should discuss with Body20 the potential for such licensed businesses in your target area and how they plan to manage any potential conflicts or cannibalization of your customer base. Understanding their strategy and commitment to supporting your franchise in the face of such competition is essential for making an informed investment decision.