Under a Body20 Development Agreement, what competition might a franchisee face?
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, a franchisee operating under a Development Agreement may encounter competition from several sources. Specifically, the franchisee may face competition from other franchisees, from outlets that Body20 owns, or from other channels of distribution or competitive brands that Body20 controls. This means that even within the Development Area, Body20 does not guarantee an exclusive territory, and the franchisee must be prepared to compete for customers.
However, Body20 does offer limited territorial protection. As long as the franchisee is fully complying with their obligations under the Development Agreement, the initial franchise agreement, and all other franchise agreements in effect, Body20 and its affiliates will not establish or operate, or license third parties to establish or operate, Body20 Studios within the Development Area, except for Studios located at or within "Non-Traditional Locations." Non-Traditional Locations include venues like big box gyms, cruise ships, military bases, college campuses, airports, and other similar captive market locations. This exception means Body20 retains the right to establish studios in these locations, even within a franchisee's Development Area.
Body20 also retains the right to engage in any other activities within the Development Area, including activities that Body20 reserves the right to engage in under the Franchise Agreement. Furthermore, Body20's affiliates may operate and/or franchise businesses that sell similar goods or services to those that Body20 franchisees sell. These affiliated franchise programs are not considered direct competitors due to the products or services they offer, but they may solicit and accept orders from customers near the franchisee's business. Because these affiliates are separate companies, Body20 does not expect conflicts regarding territory, customers, and support, and has no obligation to resolve any perceived conflicts that may arise.