What activities are considered competition with Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
e System and the Manual.
"Manual" means our confidential operations manual for the operation of a Body & Brain Center.
"Marks" means the logotypes, service marks, and trademarks now or hereafter involved in the operation of a Body & Brain Center, including "Body & Brain" and "Body & Brain Center". The term "Marks" also includes our distinctive trade dress used to identify a Body & Brain Center, whether now in existence or created in the future.
"Prohibited Activities" means any or all of the following: (i) owning, operating or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, agent or in any similar capacity) in a Competitive Business (other than owning an interest of five percent (5%) or less in a publicly traded company that is a Competitive Business); (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees); (iii) selling any Body & Brain products or services to any person who is a current member of or has a customer agreement with a franchisee (other than Franchisee) or company-owned Body & Brain outlet without the consent of the person with whom the person is a member or customer;
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, several activities are considered unfair competition and are termed "Prohibited Activities." These include owning, operating, or having any interest in a Competitive Business, defined as any business that offers brain-based education, Yoga, Taichi, or Qi-Gong. However, a franchisee can own up to five percent of a publicly traded company that is considered a Competitive Business.
Prohibited Activities also encompass actions like diverting or attempting to divert business away from Body Brain Center, its affiliates, or other franchisees. This includes selling Body Brain products or services to members or customers of other Body Brain Center locations without the consent of the respective business owner. Additionally, franchisees are prohibited from inducing customers of Body Brain Center or its affiliates to transfer their business to the franchisee or any other entity not part of the Body Brain Center franchise system.
These restrictions apply both during the term of the franchise agreement and for a specified period afterward, known as the "Post-Term Restricted Period." The restrictions after the term may be limited geographically, allowing franchisees to have an interest in a Competitive Business as long as it is not within the Restricted Territory or serving customers within that territory. Violation of these terms can lead to an extension of the restricted period, with the length of the extension matching the duration of the prohibited activity.
These non-compete clauses are common in franchising to protect the brand, customer base, and proprietary knowledge of the franchisor. Prospective Body Brain Center franchisees should carefully review these restrictions and understand their obligations to avoid potential legal issues and business limitations.