Under a Body20 Development Agreement, what happens if a proposed site is accepted and secured?

According to Body20's 2025 Franchise Disclosure Document, under a Development Agreement, each site proposed by the franchisee for a Body20 studio must be acceptable to the franchisor. Once a proposed site is accepted and secured, Body20 will determine the territory for that specific studio, applying their then-current standards for sites and territories. This means that while a Development Agreement grants the right to develop multiple studios within a defined area, the specific territory for each studio is determined individually after the site is secured and approved.

This process is important for prospective Body20 franchisees because it highlights that securing a Development Area does not guarantee specific territories for each studio location upfront. The franchisor retains control over territory boundaries based on prevailing standards at the time each site is approved. This could lead to variations in territory size and demographics for different studios within the same Development Area.

Furthermore, Body20 retains the right to terminate the Development Agreement if the franchisee fails to meet their development obligations. This underscores the importance of adhering to the development schedule outlined in the Development Agreement. The document also clarifies that franchisees operating under a Development Agreement do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by Body20. However, Body20 agrees not to establish or operate (or license others to do so) studios within the Development Area, except for studios proposed to be located at Non-Traditional Locations, as long as the franchisee is in full compliance with their agreements.