Can Body20 require franchisees to obtain non-compete agreements from officers, directors, and other designated individuals?
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).
- 15.12 Injunctive and Other Relief.
You acknowledge that your failure to abide by the provisions of this Section 15 (Your Obligations Upon Expiration or Termination) will result in irreparable harm to us, and that our remedy at law for damages will be inadequate.
Accordingly, you agree that if you breach any provisions of this Section 15, we are entitled to injunctive relief (including the remedy of specific performance) in addition to any other remedies available at law or in equity.
- 15.13 Covenant of Further Assurances.
You must execute any legal document or termination agreement that we prescribe to effectuate the termination of this Agreement and shall furnish to us, within 30 days after the effective date of termination, written evidence satisfactory to us of your compliance with all of the foregoing obligations.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees and their owners must comply with the non-compete covenants outlined in Section 12 of the franchise agreement. Additionally, they must adhere to the non-disparagement covenant detailed in Section 17.12. This indicates that Body20 places importance on protecting its business interests through non-compete and non-disparagement agreements.
Section 15.12 of the Body20 franchise agreement states that failure to comply with obligations upon expiration or termination of the agreement will cause irreparable harm to Body20. In such cases, Body20 is entitled to injunctive relief, including specific performance, in addition to any other legal or equitable remedies available. This highlights the serious consequences of breaching the non-compete and non-disparagement clauses.
Furthermore, Section 15.13 requires franchisees to execute any legal document or termination agreement prescribed by Body20 to effectuate the termination of the agreement. Franchisees must also provide written evidence of their compliance with all obligations within 30 days of the termination date. This ensures that Body20 has the necessary documentation to enforce the non-compete and non-disparagement provisions and to confirm the franchisee's adherence to these requirements.
While the FDD excerpt confirms that franchisees and their owners must comply with non-compete agreements, it does not explicitly state whether Body20 requires franchisees to obtain non-compete agreements from officers, directors, and other designated individuals. A prospective franchisee should seek clarification from Body20 regarding the specific individuals who are required to sign non-compete agreements.