When are customer files, accounts, and contracts assigned to Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We will also own all customer files, accounts and contracts, all of which shall be assigned to us (upon our request) following the expiration, termination or Transfer of this Agreement.
In addition, you agree that if one of your members switches their membership or customer agreement to another Body & Brain franchisee or company-owned business, we may transfer the account and all data pertaining to that member to the Body & Brain franchisee or company-owned business to which the membership or customer agreement was transferred.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, customer files, accounts, and contracts are assigned to Body Brain Center following the expiration, termination, or transfer of the Franchise Agreement. Specifically, Body Brain Center owns all customer files, accounts, and contracts related to the services offered by the franchisee's business. Upon Body Brain Center's request after the end of the agreement, the franchisee must assign these items to Body Brain Center.
This means that when a Body Brain Center franchise agreement concludes, the franchisee loses ownership of their customer base and the associated data. This is a significant consideration for prospective franchisees, as the value of a business often lies in its established customer relationships. The franchisee essentially builds up a customer base that ultimately reverts to Body Brain Center.
However, there is an exception: if a member transfers their membership or customer agreement to another Body & Brain franchisee or a company-owned location, Body Brain Center may transfer the account and all related data to that other franchisee or company-owned business. This ensures continuity of service for the customer and allows Body Brain Center to maintain control over customer relationships within the system. This also means that the franchisee will not have further rights or access to such transferred Client Data.
It is important for potential franchisees to understand the implications of this clause. While building a successful Body Brain Center franchise, they are simultaneously building an asset that will eventually be transferred back to Body Brain Center under certain conditions. Franchisees should inquire about the process for managing customer relationships and data during the term of the agreement and the specific procedures for transferring this information upon termination or expiration.