factual

What does Section 10 of the Body20 Franchise Agreement cover regarding proprietary information?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

Section 10 Proprietary Information.

  • 10.1 Receipt of Proprietary Information.

You acknowledge that prior to or during the Term, we may disclose in confidence to you, either orally or in writing, certain trade secrets, know-how, and other confidential information relating to the System, our business, the businesses of our franchisees, our vendor relationships, our Sessions, or the construction, management, operation, or promotion of the Studio (collectively, "Proprietary Information"), including (i) site selection criteria and methodologies; (ii) methods, formats, systems, System Standards, sales and marketing techniques, knowledge and experience used in developing and operating Studios, including information in the Manuals; (iii) marketing research and promotional, marketing, advertising, public relations, customer relationship management and other brand-related materials and programs for Studios; (iv) knowledge of specifications for and suppliers of, and methods of ordering, certain items that Studios use and/or sell; (v) knowledge of the operating results and financial performance of other Studios; (vi) customer communication and retention programs, along with data used or generated in connection with those programs; and (vii) any other information we reasonably designate from time to time as confidential or proprietary. "Proprietary Information" does not include (a) information that is part of the public domain or becomes part of the public domain through no fault of you, (b) information disclosed to you by a third party having legitimate and unrestricted possession of such information, or (c) information that you can demonstrate by clear and convincing evidence was within your legitimate and unrestricted possession when the parties began discussing the sale of the franchise.

  • 10.2 Nondisclosure of Proprietary Information.

We and our Affiliates own all right, title, and interest in and to the Proprietary Information.

You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio.

You acknowledge that your use of the Proprietary Information in any other business would constitute an unfair method of competition with us and our franchisees.

You will be liable to us for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom you disclose Proprietary Information.

Source: Item 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, Section 10 of the Franchise Agreement outlines the handling of proprietary information. It states that Body20 may disclose trade secrets, know-how, and confidential information related to the System, franchisee businesses, vendor relationships, sessions, or studio operations. This Proprietary Information includes site selection criteria, operational methods, marketing techniques, supplier specifications, knowledge of studio financial performance, customer communication programs, and any other information Body20 designates as confidential.

The Franchise Agreement clarifies that Body20 and its affiliates retain all rights to the Proprietary Information. Franchisees are prohibited from using or disclosing this information to anyone, except when necessary for their professional advisors and employees to perform their duties related to the Studio's operation.

Unauthorized use or disclosure of Proprietary Information by a Body20 franchisee or their employees can result in liability to Body20. The agreement also specifies exceptions to what constitutes Proprietary Information, excluding data already in the public domain, information received from a third party with unrestricted possession, or information the franchisee possessed legitimately before discussing the franchise sale.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.