Does the non-disparagement clause in the Body20 franchise agreement extend to the franchisee's family members?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
Based on the 2025 Franchise Disclosure Document, the Body20 franchise agreement specifies that franchisees and their Owners must comply with the non-disparagement covenant outlined in Section 17.12. This means that the non-disparagement clause directly applies to the franchisee and their Owners.
However, the document does not explicitly state whether the non-disparagement clause extends to the franchisee's family members. The clause specifically mentions "you and your Owners," which suggests that it primarily concerns the franchisee and those who have an ownership stake in the franchise.
To fully understand the scope and applicability of the non-disparagement clause, especially regarding family members, prospective Body20 franchisees should seek clarification from the franchisor. It is important to determine whether the franchisor intends to extend this clause to cover the franchisee's family members, as this could have significant implications for their conduct and public statements related to the franchise.