factual

What is the Body20 policy on the unauthorized use of intellectual property?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 9.3 No Contesting Our Rights.

During the Term of this Agreement and after its expiration or termination, you agree not to directly or indirectly contest our ownership, title, right or interest in or to, or our license to use, or the validity of, (i) the Marks, (ii) the Trade Dress, (iii) the Copyrights, or (iv) any trade secrets, methods, or procedures that are part of the System (collectively, the "Intellectual Property"), or contest our sole right to register, use, or license others to use the Intellectual Property.

  • 9.4 Changes to the Intellectual Property.

We have the right, upon reasonable notice, to change, discontinue, or substitute for any of the Intellectual Property and to adopt entirely different or new Intellectual Property for use with the System without any liability to you, in our sole discretion.

You agree to implement any such change at your own expense within the time we reasonably specify.

  • 9.5 Third-Party Challenges.

You agree to notify us promptly of any unauthorized use of the Intellectual Property of which you have knowledge.

You also agree to inform us promptly of any challenge by any person or Entity to the validity of, our ownership of, or our right to license others to use any of the Intellectual Property.

We have the right, but no obligation, to initiate, direct, and control any litigation or administrative proceeding relating to the Intellectual Property, including any settlement.

We will be entitled to retain any and all proceeds, damages, and other sums, including attorneys' fees, recovered or owed to us or our Affiliates in connection with any such action.

You agree to execute all documents and render any other assistance we may deem necessary to any such proceeding or any effort to maintain the continued validity and enforceability of the Intellectual Property.

  • 9.6 Post-Termination or Expiration.

Upon the expiration or termination of this Agreement for any reason, all of your rights to use the Intellectual Property will automatically revert to us without cost and without the execution or delivery of any document.

Upon our request, you will execute all documents that we require to confirm such reversion.

  • 9.7 Innovations.

All ideas, concepts, techniques, or materials relating to a Studio or the System (collectively, "Innovations"), whether or not protectable intellectual property and whether created by or for you or your Owners, employees, or contractors, must be promptly disclosed to us and will be deemed to be our sole and exclusive property, part of the System and the Intellectual Property, and works made-for-hire for us.

To the extent any Innovation does not qualify as a work made-for-hire for us, by this Section, you assign ownership of that Innovation, and all related rights to that Innovation, to us and agree to sign (and to cause

your Owners, employees, and contractors to sign) whatever assignment or other documents we request to evidence our ownership or to help us obtain intellectual property rights in the Innovation. We and our Affiliates have no obligation to make any payments to you or any other person with respect to any Innovations. You may not use any Innovation in operating the Studio or otherwise without our prior approval.

Source: Item 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, franchisees are prohibited from contesting Body20's rights to its intellectual property. This includes the Marks, Trade Dress, Copyrights, and any trade secrets, methods, or procedures that are part of the Body20 system. Franchisees cannot challenge Body20's right to register, use, or license others to use the intellectual property, either during the term of the agreement or after its expiration or termination.

Body20 retains the right to modify its intellectual property, including changes, discontinuations, or substitutions, without incurring any liability to the franchisee. Franchisees are responsible for implementing these changes at their own expense within a reasonable timeframe specified by Body20. Franchisees must promptly report any unauthorized use of Body20's intellectual property or any challenges to its validity or ownership. Body20 has the right, but not the obligation, to initiate and control any legal proceedings related to its intellectual property, retaining all proceeds and damages from such actions. Franchisees are required to assist in these proceedings by executing necessary documents.

Upon termination or expiration of the franchise agreement, all rights to use Body20's intellectual property automatically revert back to Body20 without any cost. Franchisees must also execute any documents necessary to confirm this reversion. Any ideas, concepts, techniques, or materials related to the Body20 studio or system, whether created by the franchisee or their employees, are considered Body20's property. Franchisees must disclose these innovations to Body20, and Body20 is not obligated to provide any compensation for them. Franchisees cannot use any innovation without Body20's prior approval.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.