After termination or transfer of a Body20 franchise, what geographic area is covered by the non-compete restrictions for owners?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 12 (Noncompete Covenants) of the Initial Franchise Agreement is hereby incorporated by reference and shall apply under this Agreement to you and your Owners, except the post-term noncompete covenant in Section 12.2 (After Termination, Expiration, or Transfer) of the Initial Franchise Agreement shall apply to any Competitive Business that is located within (i) the Development Area, (ii) a 10-mile radius of the Development Area, or (iii) a 10-mile radius of the location of any other Studio that is operating or under development at the time of such expiration, termination, or transfer. The Owners must personally bind themselves to this Section 8 by signing our current form of Payment and Performance Guarantee, which is attached as Appendix B to this Agreement.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, Section 8 of the franchise agreement outlines the noncompete covenants that apply to franchisees and their owners. Specifically, after termination, expiration, or transfer of the franchise, the noncompete applies to any Competitive Business located within the Development Area.
In addition to the Development Area, the noncompete extends to a 10-mile radius of the Development Area. It also includes a 10-mile radius of the location of any other Body20 studio that is operating or under development at the time of such expiration, termination, or transfer. This means that the geographic scope of the non-compete can vary depending on the location of other Body20 studios.
Owners of the Body20 franchise must personally agree to these noncompete terms by signing the Payment and Performance Guarantee, which is attached as Appendix B to the agreement. This ensures that the noncompete obligations are directly enforceable against the owners, not just the franchisee entity. This is a common practice in franchising to prevent owners from circumventing the noncompete by operating a competing business through a different entity.