Does Body20's right to conduct business activities extend to activities that might affect a Body20 Studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
au or other governmental agencies and commercial sources).
You will not receive an exclusive territory. You may face competition from other franchisees, outlets that we own, or other channels of distribution or competitive brands that we control.
Except as described below and for Non-Traditional Locations (defined below), we and our affiliates will not open, or license a third party to open, a Studio within your Territory. Except as stated in the preceding sentence, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area, at any location, regardless of the proximity to or effect on your Studio. For example, we and our affiliates have the right to:
- (1) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory. A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multi-unit residential properties, and other similar captive market locations;
- (2) establish, or license others to establish, studios or businesses offering similar or identical products, services, classes, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory, or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
- (3) sell or offer, or license others to sell or offer, any products, services, or Sessions using the Marks or other marks through any alternative distribution channels, including through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Territory;
- (4) advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside of the Territory; and
- (5) acquire, be acquired by, or merge with other companies with existing studios or businesses anywhere (including inside or outside of the Territory) and, even if such businesses are located in the Territory, (i) convert the other businesses to the Brand, (ii) permit the other businesses to continue to operate under another name, and/or (iii) permit the businesses to operate under another name and convert existing Studios to such other name.
Currently, we anticipate offering on-demand subscriptions, retail products, and teacher training programs under the Marks or other marks, but we and our affiliates reserve the right to conduct any of the aforementioned activities.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 and its affiliates retain the right to conduct business activities that could potentially impact a franchisee's Body20 studio. Specifically, Body20 has the right to conduct business activities under any name, in any geographic area, and at any location, regardless of its proximity to or effect on a franchisee's studio. This includes the right to establish or license others to operate Body20 studios or sessions at Non-Traditional Locations, such as big box gyms, cruise ships, military bases, college campuses, airports, and other similar venues, both inside and outside the franchisee's territory.
Body20 also reserves the right to establish or license others to establish studios or businesses offering similar products, services, classes, and programs using the Body20 system or elements of the system under different names or marks, both within and outside the franchisee's territory. They can also sell or offer products, services, or sessions through alternative distribution channels like e-commerce, retail stores, online videos, or broadcast media, again without territorial restrictions. Furthermore, Body20 can advertise using the Body20 marks anywhere and can acquire, be acquired by, or merge with other companies with existing studios or businesses, even within a franchisee's territory, and potentially convert those businesses to the Body20 brand or allow them to operate under another name.
This broad reservation of rights means that a Body20 franchisee's territory is not exclusive, and they may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by Body20. While the franchisee will have a protected territory, Body20's activities are not restricted within that territory, except that Body20 and its affiliates will not open, or license a third party to open, a Studio within your Territory. This exception does not apply to Non-Traditional Locations. Body20 will not compensate franchisees for any impact its activities may have on their studios.
Prospective franchisees should be aware that Body20's extensive rights to conduct business activities, even those that may affect a franchisee's studio, could lead to increased competition and potentially impact their revenue. It is important to carefully consider the potential implications of these rights and to discuss them with Body20 before investing in a franchise.