What rights does Body20 retain in the Development Area after the Area Development Agreement expires or is terminated?

According to Body20's 2025 Franchise Disclosure Document, upon the expiration or termination of the Area Development Agreement, Body20 and its affiliates have specific rights within the Development Area. Body20 has the right to develop and operate Body20 studios, or license third parties to do so, at physical locations within the Development Area. However, this is subject to the franchisee's (or an affiliated entity's) rights within a Territory under a Franchise Agreement with Body20 that is still in effect. Body20 also retains the right to continue any other activities it desires within the Development Area.

This means that once the Development Agreement concludes, Body20 is free to establish its own studios or allow others to open franchises in the area, except where the original franchisee still holds active franchise agreements for specific territories. This is a standard provision in area development agreements, allowing the franchisor to ensure continued market presence and growth even if the developer relationship ends.

For a prospective Body20 area developer, this clause highlights the importance of fulfilling the development schedule and maintaining good standing. Failure to meet development obligations could lead to termination, opening the door for Body20 to directly compete or appoint new developers in the area. The franchisee's rights are protected only to the extent that they have existing, active Franchise Agreements in place.