Can Body20 merge with other companies with existing studios outside of my Body20 territory?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to acquire, be acquired by, or merge with other companies that have existing studios or businesses located anywhere, including outside of a franchisee's territory. This means Body20 could merge with a company that owns fitness studios in other regions, regardless of any existing Body20 franchise territories.

Even if these acquired businesses are located within a franchisee's territory, Body20 has the right to (i) convert them to the Body20 brand, (ii) allow them to continue operating under another name, or (iii) permit them to operate under another name and convert existing Body20 studios to that other name. This gives Body20 considerable flexibility in how it integrates acquired businesses, even if they directly compete with existing franchisees.

This clause highlights a potential risk for franchisees. While franchisees are granted a territory, Body20 retains the right to make strategic decisions, such as mergers and acquisitions, that could impact the competitive landscape within that territory. Prospective franchisees should carefully consider this when evaluating the potential for competition and market saturation in their area.