What constitutes 'Prohibited Activities' in relation to a Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
"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; and/or (iv) inducing any customer of ours (or of one of our affiliates or franchisees) to transfer their business to you or to any other person that is not then a franchisee of ours.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, 'Prohibited Activities' are specifically defined in the context of unfair competition, both during and after the franchise term. These activities are restricted to protect Body Brain Center's business interests and its franchise system.
During the term of the franchise agreement, 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 competitor). It also encompasses actions like diverting business away from Body Brain Center, its affiliates, or franchisees. Selling Body Brain products or services to members or customers of other Body Brain locations without consent, and inducing customers to transfer their business away from the Body Brain system are also considered prohibited activities.
After the franchise term, these restrictions continue during the Post-Term Restricted Period. However, having an interest in a competitive business is permitted if that business is not located within the Restricted Territory and does not serve customers within that territory. Engaging in any other prohibited activity during this period extends the duration of the Post-Term Restricted Period by the length of time the activity occurred. These measures are in place to prevent franchisees from leveraging Body Brain Center's confidential information and customer relationships to unfairly compete against the franchise system.