What is the consequence of unfairly competing with Body Brain Center during the Restricted Period?

According to Body Brain Center's 2025 Franchise Disclosure Document, if a franchisee engages in prohibited activities during the restricted period, the restricted period will be extended by the amount of time the franchisee was engaging in the prohibited activity. The restricted period is two years after ceasing to be an employee, director, officer, member, partner, or independent contractor of the franchisee. However, if a court determines that this period is too long to be enforceable, the restricted period will be one year.

Prohibited activities include owning, operating, or having any interest in a competitive business (with a minor exception for owning 5% or less of a publicly traded company), diverting business away from Body & Brain, selling Body & Brain products or services to members or customers of other franchisees or company-owned outlets without consent, or inducing customers to transfer their business away from Body & Brain to a non-franchisee.

This means that if a franchisee violates the non-compete agreement, the length of time they are restricted from competing with Body Brain Center will be extended, potentially hindering their ability to start a similar business in the future. This clause aims to protect Body Brain Center's market share and proprietary information by preventing former franchisees from immediately leveraging their knowledge to compete against the franchise.