Are there any exceptions to Body20's territorial restrictions?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Limited Territorial Protection.
Once you have selected and we have accepted a Site in the Site Selection Area in accordance with Section 4.1 (Site Selection), we will designate an area within the confines of the Site Selection Area as your protected territory (the "Territory").
You do not have any territorial protection in your Site Selection Area, unless and until we identify your Territory, as explained in Section 4.2 (Definition of the Territory).
Except as provided in this Section 1.3 and for Non-Traditional Locations (as defined below), we and our Affiliates will not open, or license a third party to open, a Studio within your Territory.
Except for the foregoing sentence, we and our Affiliates have the right to conduct any business activities, under any name, in any geographic area, and at any location, regardless of the proximity to or effect on your Studio.
For example, without limitation, we and our Affiliates have the right to:
- (a) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory.
A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multiunit residential properties, and other similar captive market locations;
- (b) establish or license franchises and/or company-owned studios or businesses offering similar or identical products, services, Sessions, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a franchisee's territorial protection is limited and subject to certain exceptions. Once Body20 accepts a site selected by the franchisee within a designated Site Selection Area, Body20 will define a protected Territory within that area. However, this protection doesn't exist until Body20 formally identifies the Territory.
Body20 retains significant rights to conduct business activities, even near a franchisee's studio. Specifically, Body20 and its affiliates can establish studios or sessions at Non-Traditional Locations, such as big box gyms, cruise ships, military bases, college campuses, airports, and other similar venues, regardless of their proximity to the franchisee's Territory. They can also establish or license franchises offering similar services under different names or marks, both inside and outside the Territory.
Furthermore, Body20 has the right to temporarily or permanently reduce the size of a franchisee's Territory if an Event of Default occurs. In such cases, the restrictions on Body20 and its affiliates regarding opening or licensing studios in the removed geographic area will no longer apply. This means that a franchisee's protected territory can be altered or diminished under certain circumstances, potentially increasing competition in the area.