What sections of the Body20 agreement continue to bind the franchisee and owners after a Control Transfer?

According to the 2025 Body20 Franchise Disclosure Document, even after a control transfer of the franchise, certain obligations remain in effect for both the franchisee and their owners. Specifically, the franchisee and owners must continue to adhere to the stipulations outlined in Sections 9, 10, 11, and 12 of the Franchise Agreement.

These sections cover critical aspects of the Body20 franchise operation. Section 9 pertains to intellectual property, meaning the franchisee and owners must still respect and protect Body20's trademarks, copyrights, and other proprietary assets. Section 10 addresses proprietary information, obligating the franchisee and owners to maintain the confidentiality of Body20's business methods, customer data, and other sensitive information. Section 11 deals with indemnification, requiring the franchisee and owners to protect Body20 from any liabilities or losses arising from the operation of the franchise prior to the transfer. Section 12 includes noncompete covenants, which restrict the franchisee and owners from engaging in any competitive business activities that could harm Body20.

This continuation of obligations is structured as if the Franchise Agreement had expired or terminated on the effective date of the transfer. This ensures that Body20's interests are protected even after a change in ownership, maintaining the integrity of the brand and the consistency of operations across all franchise locations. Prospective franchisees should carefully review these sections to understand the full scope of their responsibilities, even after transferring control of their Body20 franchise.