Does Body20 have the right to conduct business activities under any name in any geographic area?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Body20 retains significant rights to conduct business activities under various names and in any geographic area, which could impact a franchisee's business. Specifically, Body20 and its affiliates have the right to establish studios or businesses offering similar products and services, using the Body20 system, under names other than the Body20 marks, both inside and outside a franchisee's territory. This means that Body20 could potentially operate competing businesses nearby, diluting a franchisee's market share.
Furthermore, Body20 reserves the right to sell products and services through alternative distribution channels, such as e-commerce and retail stores, using the Body20 marks or other marks, regardless of location. This broad right allows Body20 to engage in activities that could directly compete with a franchisee's revenue streams. Body20 can also advertise using the Body20 marks anywhere and acquire or merge with other companies, potentially converting existing businesses within a franchisee's territory to the Body20 brand or allowing them to operate under a different name.
While a franchisee is in compliance with the Franchise Agreement, their exclusive rights in their territory will not be modified, except by mutual written agreement. However, this protection is limited, as Body20 retains the right to conduct business activities, under any name, in any geographic area, regardless of the proximity to or effect on a franchisee's studio. This includes establishing studios or sessions at Non-Traditional Locations, such as gyms, cruise ships, and college campuses, even within a franchisee's territory. Prospective franchisees should carefully consider these factors and how they might affect their potential business before investing in a Body20 franchise.