Can Body20 license others to operate Body20 studios at Non-Traditional Locations outside my territory?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to license others to operate studios or sessions at Non-Traditional Locations both inside and outside of your 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 of Non-Traditional Locations include big box gyms, cruise ships, military bases, college campuses, airports, sports venues, hotels, theme parks, industrial complexes, train stations, travel plazas, casinos, hospitals, multi-unit residential properties, and other similar captive market locations. This right is explicitly reserved by Body20, meaning your territorial protection does not extend to these types of locations.

This means that even if you have a protected territory, Body20 can still establish or license studios in Non-Traditional Locations within or outside your territory, potentially creating competition in those specific venues. As a franchisee, you would not have any say in these decisions, and your exclusive rights would not apply to these Non-Traditional Locations.

This is a common practice in franchising, particularly in the fitness industry, where franchisors often seek to expand their brand presence through non-traditional venues. Prospective franchisees should carefully consider the implications of this clause, as it could impact their potential customer base and revenue, especially if a Non-Traditional Location is established nearby. It is important to understand the definition of Non-Traditional Locations and assess the likelihood of such locations being developed in or near your territory.

The FDD also states that Body20 reserves the right to engage in other activities, and license third parties to engage in any other activities of any nature whatsoever within and throughout the Development Area. These activities include selling products or services through alternative distribution channels like e-commerce or retail stores, and advertising using the Body20 marks anywhere, including inside and outside of the Territory. These activities could further impact a franchisee's business within their territory.

Therefore, while you have limited territorial protection, Body20 retains significant rights to operate and license others in various capacities, including Non-Traditional Locations, alternative distribution channels, and advertising, which could affect your business. It is crucial to fully understand these rights and their potential impact before investing in a Body20 franchise.