What standards apply to sites and Territories proposed by a Body20 franchisee?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Area. You may (if you qualify) develop and operate a number of Studios within a specific territory (the "Development Area"). We and you will identify the Development Area in the Development Agreement before signing it. The Development Area typically is a city, cities, counties, or specific zip codes and will be narratively described in, and pictorially identified on a map attached to, the Development Agreement. We base the Development Area's size primarily on the number of Studios that you commit to develop, demographics, distinct market areas within the Development Area, competitive businesses, and site availability. We will determine the number of Studios that you must develop, and the deadlines for development, to keep your development rights. We and you will complete the Development Schedule in the Development Agreement before signing it. Each site you propose for a Studio to be developed under the Development Agreement must be acceptable to us. After each proposed site is accepted and secured, we will determine the Territory for that Studio. Our then-current standards for sites and Territories will apply. We have the right to terminate the Development Agreement if you do not satisfy your development obligations. You may not develop or operate Studios outside the Development Area.
Limited Territorial Protection. You will not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. If you (and your Affiliated Entities, as applicable) are fully complying with your (and their) obligations under the Development Agreement, the initial franchise agreement executed thereunder, and all other franchise agreements then in effect between us and you (and your Affiliated Entities, as applicable), during the term of the Development Agreement, we (and our affiliates) will not except with respect to Studios proposed to be located at or within "Non-Traditional Locations" establish or operate, or license third parties to establish or operate, Studios that have their physical locations within the Development Area. There are no other restrictions on our and our affiliates' activities in the Development Area during the term of the Development Agreement. We (and our affiliates) reserve the right without any restrictions whatsoever to pursue and establish, or franchise or license others to pursue and establish, Studios to be located at or within Non-Traditional Locations having their physical locations within the Development Area.
Source: Item 12 — TERRITORY (FDD pages 49–53)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the standards for sites and territories depend on whether the franchisee is signing a standard Franchise Agreement or a Development Agreement. For a standard Franchise Agreement, the franchisee must select a site that Body20 has accepted within a non-exclusive Site Selection Area. Once the site is secured, Body20 will grant a Territory, which is not exclusive. The size of the Territory typically encompasses a population of approximately 50,000 people surrounding the studio or a two-mile radius from the studio's front door, whichever includes fewer people. However, in high-density urban markets with a population above one million, Body20 might not provide any territory or might reduce it to no more than a city block.
For a Development Agreement, the franchisee may develop and operate multiple studios within a specific Development Area. Each proposed site must be acceptable to Body20, and after the site is accepted and secured, Body20 will determine the Territory for that studio, applying its then-current standards for sites and Territories. The Development Area is typically a city, cities, counties, or specific zip codes. The size of the Development Area is based primarily on the number of studios the franchisee commits to develop, demographics, distinct market areas, competitive businesses, and site availability.
In both types of agreements, Body20 retains significant control over site selection and territorial boundaries. The franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. Body20 also reserves the right to establish studios or businesses at Non-Traditional Locations, such as gyms, cruise ships, or airports, even within a franchisee's Territory or Development Area. If a franchisee wishes to relocate their studio, they must receive Body20's written consent, and the new location must meet Body20's then-current requirements. If a franchisee fails to meet certain minimum sales levels, Body20 may reduce the size of their Territory.