After termination of the Body20 franchise agreement, is a franchisee prohibited from using the Body20 system?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately cease using, by advertising or in any other manner, (i) the Intellectual Property (including, without limitation, the Marks and the Trade Dress), (ii) the System and all other elements associated with the System, and (iii) any colorable imitation of any of the Intellectual Property or any trademark, service mark, trade dress, or commercial symbol that is confusingly similar to any of the Marks or the Trade Dress.
- 15.4 Return of Proprietary Information.
You must immediately return to us, at your expense, (i) all hard copies and electronic copies (capable of being returned) of the Proprietary Information, including the Manuals and Customer Information, and of materials bearing the Marks; and (ii) all other manuals, records, files, instructions, correspondence, and other materials relating to the operation of the Studio ("Other Materials") in the possession of any Franchisee Party.
If Franchisee or its Owners have on their computer systems, e-mail accounts, or other digital storage systems or services copies of the Proprietary Information, any proprietary software, and/or Other Materials, they must immediately erase these copies.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, if the franchise agreement is terminated, the franchisee must immediately stop using the Body20 system. This includes refraining from advertising or using the intellectual property, such as the Body20 marks and trade dress, the Body20 system, and any similar imitations.
This means that upon termination, a franchisee cannot continue to operate a fitness training studio using the Body20 brand, system, or any elements associated with it. This restriction is in place to protect Body20's brand identity, system standards, and intellectual property rights. The franchisee must also return all proprietary information, including manuals, customer information, and materials bearing the Body20 marks, at their own expense.
Furthermore, the franchisee is responsible for erasing any digital copies of proprietary information, proprietary software, and other materials related to the Body20 studio's operation from their computer systems, email accounts, or other digital storage systems. This ensures that no confidential or trademarked information remains in the possession of the former franchisee, preventing potential misuse or unauthorized continuation of the Body20 business model.