Which sections of the Body20 franchise agreement continue to bind the franchisee and owners after a Control Transfer?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) You and your Owners must continue to be bound by the provisions of Sections 9 (Intellectual Property), 10 (Proprietary Information), 11 (Indemnification), and 12 (Noncompete Covenants) as if they were the Franchisee and this Agreement had expired or terminated as of the effective date of the Transfer;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, even after a Control Transfer, franchisees and their owners remain bound by specific sections of the franchise agreement. Specifically, they must continue to adhere to the obligations outlined in Sections 9, 10, 11, and 12. These sections pertain to intellectual property, proprietary information, indemnification, and noncompete covenants.
This means that even after transferring control of the Body20 franchise, the original franchisee and their owners are still responsible for protecting Body20's intellectual property, maintaining the confidentiality of proprietary information, and adhering to the noncompete agreements. These obligations remain in effect as if the franchise agreement had expired or terminated on the effective date of the transfer.
For a prospective Body20 franchisee, this highlights the long-term responsibilities associated with the franchise agreement. Even after selling the business, the franchisee and their owners must continue to uphold certain key obligations to protect Body20's interests. This is a fairly standard practice in franchising, as franchisors want to ensure brand consistency and protect their trade secrets even after a franchise changes hands.