Does Body Brain Center currently negotiate purchase agreements with suppliers?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Purchase Agreements
At this time, we do not negotiate purchase agreements with suppliers. However, we may in the future try to establish relationships with suppliers to enable our affiliates and franchisees to purchase certain items at discounted prices. If we succeed, you will be able to purchase these items at the discounted prices that we negotiate (less any rebates or other consideration paid to us). Alternatively, we reserve the right to purchase the items in bulk and resell them to you at our cost plus a reasonable markup (your total cost to purchase the items from us will not exceed your total cost to purchase the items directly from the supplier without the benefit of our group purchasing power). There are no purchasing cooperatives, although we reserve the right to establish one or more purchasing cooperativesin the future. You do not receive any material benefits for using designated or approved suppliers other than having access to any discounted pricing that we negotiate.
Franchisor & Affiliate Revenues from Source 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.
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 does not currently negotiate purchase agreements with suppliers. However, Body Brain Center may attempt to establish relationships with suppliers in the future to allow franchisees to purchase certain items at discounted prices. If Body Brain Center succeeds in negotiating discounted prices, franchisees will be able to purchase items at those rates, less any rebates or other considerations paid to Body Brain Center. Body Brain Center also reserves the right to buy items in bulk and resell them to franchisees at their cost plus a reasonable markup. The FDD states that the franchisee's total cost to purchase items from Body Brain Center will not exceed the cost of purchasing directly from the supplier without the benefit of Body Brain Center's group purchasing power. There are currently no purchasing cooperatives, but Body Brain Center reserves the right to establish one or more in the future. The only material benefit franchisees receive for using designated or approved suppliers is access to any discounted pricing that Body Brain Center negotiates.
While Body Brain Center is not currently an approved or designated supplier for any source-restricted items, they reserve the right to become one in the future, which could generate revenue for them. Body Brain Center may also receive rebates, payments, or other material benefits from vendors based on franchisee purchases. All rebates and payments from suppliers will be deposited into the advertising fund. For the fiscal year ended December 31, 2024, Body Brain Center did not receive any revenues based on franchisee purchases from approved or designated suppliers.
Body Brain Center's parent company, BBYHC, is the exclusive licensor of the required web-based point of sale system (BRMNet Software), for which franchisees must pay a monthly fee of $40. BBYHC's merchandising division, HSP World, is an approved supplier for certain optional inventory items. 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.