Can Body20 license others to operate Body20 Studios at Non-Traditional Locations inside a franchisee's Territory?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ence, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area, at any location, regardless of the proximity to or effect on your Studio. For example, we and our affiliates have the right to:
- (1) establish, or license others to operate, Studios or Sessions operating under the 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;
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 can license others to operate Body20 studios at Non-Traditional Locations, even within a franchisee's territory. A Non-Traditional Location is defined as a site within a larger venue that draws at least 75% of its customers from that larger facility. Examples include big box gyms, cruise ships, military bases, college campuses, airports, sports venues, hotels, theme parks, industrial complexes, train stations, travel plazas, casinos, hospitals, and multi-unit residential properties.
This means that even if a Body20 franchisee has a protected territory, Body20 retains the right to establish or license studios in these Non-Traditional Locations within that territory. This could potentially lead to competition for the franchisee from a Body20 studio operating in a location like a gym or corporate office within their territory.
This is a significant consideration for prospective franchisees as it limits the exclusivity of their territory. While franchisees have protected rights in their territory, this protection does not extend to Non-Traditional Locations. Body20 and its affiliates reserve the right to pursue and establish, or franchise or license others to pursue and establish, studios to be located at or within Non-Traditional Locations having their physical locations within the Development Area. This is a fairly common practice in franchising, particularly for brands that seek to expand rapidly through diverse channels. Franchisees should carefully evaluate the potential impact of these Non-Traditional Locations on their business when considering a Body20 franchise.