Can Body20 require franchisees to implement specific systems, procedures, or training programs to protect Proprietary Information?

According to Body20's 2025 Franchise Disclosure Document, Body20 franchisees are required to take necessary precautions to protect proprietary information from unauthorized use or disclosure. This includes implementing any systems, procedures, or training programs that Body20 requires. This ensures that sensitive information, such as trade secrets, know-how, and confidential details about the System, business practices, franchisee data, vendor relationships, Sessions, and studio operations, remains secure.

This obligation extends to all employees or individuals to whom the franchisee discloses proprietary information. The franchisee is liable for any unauthorized use or disclosure of this information by these parties. To further safeguard proprietary information, Body20 may also request franchisees to ensure that anyone with access to this information signs non-disclosure agreements that are satisfactory to Body20, naming Body20 as a third-party beneficiary with the right to enforce the agreement.

For a prospective Body20 franchisee, this means they must be prepared to invest in and maintain the systems, procedures, and training programs mandated by Body20 to protect proprietary information. Failure to comply with these requirements could result in liability for unauthorized disclosures and potential legal repercussions. It is essential for franchisees to understand the scope of 'Proprietary Information' as defined by Body20 and to diligently follow all guidelines to prevent breaches and maintain the confidentiality of sensitive data.