Under what conditions will Body20 not establish or operate Studios within the Development Area?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchisor and its affiliates will generally not establish or operate Body20 studios within a franchisee's Development Area, nor will they license others to do so, provided the franchisee is meeting all obligations under their agreements. This protection does not apply to "Non-Traditional Locations." These are defined as sites within larger venues that draw most of their customers from that venue, such as gyms, cruise ships, military bases, college campuses, airports, hotels, theme parks, and casinos.
Body20 reserves the right to establish or franchise studios at Non-Traditional Locations within a franchisee's Development Area. This means a franchisee could face direct competition from a Body20 location within their designated area if it's located in one of these Non-Traditional Locations.
Additionally, if a Body20 franchisee defaults on their Development Agreement, Body20 has the option to modify the Development Area or the Development Schedule, effectively decreasing the number of studios the franchisee is required to develop. This modification can be done unilaterally with written notice, and the franchisee will not be entitled to a refund of any portion of the Development Fee if such a reduction occurs due to default. This clause highlights the importance of meeting development obligations to maintain the original scope of the Development Area.