Can Body20 require franchisees to have individuals with access to Proprietary Information sign non-disclosure agreements?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ge that your use of the Proprietary Information in any other business would constitute an unfair method of competition with us and our franchisees. You will be liable to us for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom you disclose Proprietary Information. You will take reasonable precautions to protect the Proprietary Information from unauthorized use or disclosure and will implement any systems, procedures, or training programs that we require. At our request, you will require anyone who may have access to the Proprietary Information to execute non-disclosure agreements in a form satisfactory to us that identifies us as a third-party beneficiary of such covenants with the independent right to enforce the agreement.
10.3 Customer Information.
(a) Protection of Customer Information.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 franchisees are required to ensure that anyone with access to the company's Proprietary Information signs a non-disclosure agreement. This agreement must be in a format that Body20 finds satisfactory.
Body20 also requires that the non-disclosure agreement identifies Body20 as a third-party beneficiary. This provision grants Body20 the independent right to enforce the agreement, meaning Body20 can directly take legal action against individuals who violate the non-disclosure terms, even if those individuals are not directly contracted with Body20.
This requirement protects Body20's confidential information and trade secrets. It also ensures that franchisees take responsibility for managing access to sensitive information within their business. Franchisees are liable for any unauthorized use or disclosure of Proprietary Information by employees or other individuals to whom they provide access. Franchisees must also take reasonable precautions to protect Proprietary Information and implement any required systems, procedures, or training programs.