Is Body Brain Center or its affiliates potentially an exclusive designated supplier?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
rce Restricted Purchases**
Although we are not currently an approved or designated supplier for any source restricted items, we reserve the right to designate ourselves as an approved or designated supplier in the future, in which case we may generate revenues from these purchases. We may receive rebates, payments or other material benefits from vendors based on franchisee purchases. We will deposit all rebates and payments from suppliers into the advertising fund. In the fiscal year ended December 31, 2024, we did not receive any revenues based on Body & Brain Center franchisee purchases from approved or designated suppliers.
Our parent, BBYHC, is the exclusive licensor of the web-based point of sale system you must use (BRMNet Software). You must pay BBYHC a monthly fee of $40 per month for use of this system. BBYHC's merchandising division, HSP World, is our approved supplier for certain optional inventory items,
including books, uniforms, clothing, healing products, dietary supplements, and skin care products. BBYHC is also the exclusive provider of the required Self-Enrichment Workshop, Qualified Instructor Training and Leadership Training. BBYHC and our other affiliates may be approved or designated suppliers for other goods or services in the future. During the fiscal year ended December 31, 2024, BBYHC received a total of $26,854.98 in revenues based on Body & Brain Center franchisee purchases from approved or designated suppliers, including purchases from BBYHC. The source of this information is an internal financial accounting document prepared by BBYHC's Accounting Department.
There are no approved or designated suppliers in which any of our officers owns an interest.
ITEM 9 FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and other items in this Disclosure Document.
| OBLIGATION | SECTION IN FRANCHISE AGREEMENT (“FA”) | DISCLOSURE | ||
|---|---|---|---|---|
| OR SOFTWARE SERVICE AGREEMENT (“SSA”) | DOCUMENT ITEM | |||
| a. Site selection and | FA: Section 7.1 & 7.2 | Item 7 & 11 | ||
| acquisition/lease | SSA: Not Applicable | |||
| b. Pre-opening purchases/leases | FA: Section 7.3, 10.4 & 15.1 SSA: Not Applicable | Item 5, 7, 8 & 11 | ||
| c. Site development and other | FA: Section 7.3 & 7.4 | Item 6, 7 & 11 | ||
| pre-opening requirements | SSA: Not Applicable | |||
| d. Initial and ongoing training | FA: Section 5 SSA: Not Applicable | Item 6 & 11 | ||
| e. Opening | FA: Section 7.4 SSA: Not Applicable | Item 11 | ||
| f. Fees | FA: Section 4.2, 5.6, 6.2, 9.1(b), 9.4, 10.8, 10.10, 13, 15.1 & 19.2(vi) [Also see Section 3 of the Training Agreement] SSA: Section 3.1 | Item 5 , 6, 8 & 11 | ||
| g. Compliance with standards and policies/Operating Manuals | FA: Section 6.1, 7.1, 9.3(a) & 10 SSA: Section 3.2 | Item 11 | ||
| h . Trademarks and proprietary information | FA: Section 17 [Also see Section 5 of the Training Agreement] SSA: Section 4 & 5 | Item 13 & 14 | ||
| i. Restrictions on | FA: Section 10.3 & 17.1 | Item 16 | ||
| products/services offered | SSA: Not Applicable | |||
| j. Warranty and customer | FA: Section 10.8 | Item 6 | ||
| service requirements | SSA: Not Applicable | |||
| k. Territorial development and | FA: Not Applicable | Item 12 | ||
| sales quotas | SSA: Not Applicable |
| OBLIGATION | SECTION IN FRANCHISE AGREEMENT (“FA”) | DISCLOSURE | |
|---|---|---|---|
| OR SOFTWARE SERVICE AGREEMENT (“SSA”) | DOCUMENT ITEM | ||
| l. Ongoing product/service | FA: Section 10.4 | Item 8 | |
| purchases | SSA: Not Applicable | ||
| m. Maintenance, appearance and | FA: Section 10.5 & 10.6 | Item 11 | |
| remodeling requirements | SSA: Not Applicable | ||
| n. Insurance | FA: Section 15.1 SSA: Not Applicable | Item 6 & 7 | |
| o. Advertising | FA: Section 9 SSA: Not Applicable | Item 6, 7 & 11 | |
| p. Indemnification | FA: Section 18 SSA: Section 7 | Item 6 | |
| q. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–19)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, Body Brain Center or its affiliates may be designated as exclusive suppliers in the future. While Body Brain Center states that it is not currently an approved or designated supplier for any source restricted items, it reserves the right to designate itself or its affiliates as such in the future, which could result in Body Brain Center generating revenue from franchisee purchases. Currently, the parent company, BBYHC, is the exclusive licensor of the required BRMNet Software, for which franchisees must pay a monthly fee of $40. BBYHC is also the exclusive provider of the required Self-Enrichment Workshop, Qualified Instructor Training, and Leadership Training.
BBYHC's merchandising division, HSP World, is an approved supplier for certain optional inventory items like books, uniforms, clothing, healing products, dietary supplements, and skin care products. For the fiscal year ended December 31, 2024, BBYHC received $26,854.98 in revenues from Body Brain Center franchisee purchases from approved or designated suppliers, including its own purchases. This revenue information comes from an internal financial accounting document prepared by BBYHC's Accounting Department.
Body Brain Center requires franchisees to purchase certain source-restricted goods and services, estimating that 85% to 95% of the total purchases needed to establish and operate the business will consist of these items. These include inventory, marketing materials, the computer system, music, lease, and insurance policies. While franchisees can purchase marketing materials and computer systems from any supplier, the computer system must utilize the BRMNet Software licensed from BBYHC. Additionally, franchisees must get advanced authorization of music and ensure their landlord signs a Lease Addendum that protects Body Brain Center's interests.