Does the non-disparagement clause in the Body20 franchise agreement apply to former franchisees?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.10 Promote Separate Identity.
You will not, directly or indirectly, in any manner, identify yourself, or any individual connected with you, as a former Brand franchisee or as otherwise having been associated with us, or use in any manner or for any purpose any of the Marks.
- 15.11 Comply with Noncompete and Non-Disparagement.
You and your Owners must comply with the covenant not to compete in Section 12 (Noncompete Covenants) and the non-disparagement covenant in Section 17.12 (Non-Disparagement).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the non-disparagement clause applies to former franchisees. Specifically, upon termination or expiration of the Franchise Agreement, franchisees and their owners must continue to comply with the non-disparagement covenant outlined in Section 17.12 of the agreement. This means that even after a franchisee leaves the Body20 system, they are still legally obligated to refrain from making negative or disparaging statements about the brand.
This obligation is further reinforced by the franchisor's right to seek injunctive relief if a franchisee breaches the non-disparagement clause. This means Body20 can pursue legal action to prevent a former franchisee from continuing to make disparaging remarks. Additionally, franchisees are prohibited from identifying themselves as former Body20 franchisees or otherwise associating themselves with the brand in any way after termination or expiration of the agreement.
The inclusion of a non-disparagement clause that extends beyond the term of the franchise agreement is fairly common in franchising. It protects the brand's reputation and goodwill, which are valuable assets. Prospective Body20 franchisees should understand that this obligation continues even after they are no longer part of the system, and any violation could result in legal consequences.