Can Body20 require individuals with access to Proprietary Information to execute non-disclosure agreements?

According to the 2025 Body20 Franchise Disclosure Document, Body20 can request franchisees to ensure that anyone who may have access to the Proprietary Information executes non-disclosure agreements. These agreements must be in a form satisfactory to Body20, and they must identify Body20 as a third-party beneficiary. This grants Body20 the independent right to enforce the agreement. Proprietary Information refers to confidential information and trade secrets owned by Body20 Franchisor LLC. Unauthorized use or disclosure of this information could harm Body20, its franchisees, and the franchisee themselves.

This requirement ensures that Body20 can protect its confidential information and trade secrets. By requiring non-disclosure agreements, Body20 aims to prevent unauthorized use or disclosure of Proprietary Information by anyone who has access to it through the franchisee's operations. This is a common practice in franchising to maintain the integrity and competitive advantage of the franchise system.

For a prospective Body20 franchisee, this means they must implement procedures to safeguard Proprietary Information and ensure that anyone with access to it, such as employees or contractors, signs a non-disclosure agreement. The franchisee is also liable for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom they disclose it. This places a responsibility on the franchisee to carefully manage and protect Body20's confidential information.