Does Body20 reserve the right to establish Studios at Non-Traditional Locations within the Development Area?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If you (and your Affiliated Entities, as applicable) are fully complying with your (and their) obligations under the Development Agreement, the initial franchise agreement executed thereunder, and all other franchise agreements then in effect between us and you (and your Affiliated Entities, as applicable), during the term of the Development Agreement, we (and our affiliates) will not except with respect to Studios proposed to be located at or within "Non-Traditional Locations" establish or operate, or license third parties to establish or operate, Studios that have their physical locations within the Development Area. There are no other restrictions on our and our affiliates' activities in the Development Area during the term of the Development Agreement. We (and our affiliates) reserve the right without any restrictions whatsoever to pursue and establish, or franchise or license others to pursue and establish, Studios to be located at or within Non-Traditional Locations having their physical locations within the Development Area.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 reserves the right to establish or license others to operate Studios or Sessions at Non-Traditional Locations within the Development Area, regardless of any territorial protections granted to franchisees. A Non-Traditional Location is defined as a site within a larger venue or facility that draws at least 75% of its customers from that larger venue. Examples of Non-Traditional Locations include big box gyms, fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations, transportation facilities, travel plazas, casinos, hospitals, and multi-unit residential properties.
This means that even if a Body20 franchisee has a protected territory under their Development Agreement, Body20 can still establish or license studios in Non-Traditional Locations within that territory. This could create competition for the franchisee, as these Non-Traditional Locations may draw customers from the same pool. The FDD specifies that there are no other restrictions on Body20's activities within the Development Area, further emphasizing their right to pursue these alternative locations.
For a prospective Body20 franchisee, this is an important consideration. While the Development Agreement may grant certain territorial rights, these rights are limited by Body20's ability to establish studios in Non-Traditional Locations. Franchisees should carefully evaluate the potential impact of these locations on their business and factor this into their financial projections. It is also important to understand the definition of Non-Traditional Locations and how Body20 interprets this definition in practice.
This practice is not uncommon in franchising, as franchisors often seek to expand their brand presence through various channels, including non-traditional venues. However, it is crucial for franchisees to be aware of these potential conflicts and to understand the extent to which their territorial rights are protected. Prospective franchisees should discuss this issue with Body20 during their due diligence process to gain a clearer understanding of the potential impact on their investment.