What is the definition of 'Competitive Business' in relation to a Body Brain Center?

According to the 2025 Body Brain Center Franchise Disclosure Document, a 'Competitive Business' is defined as any business that competes with Body Brain Center, its affiliates, or its franchisees. This includes businesses that offer brain-based education, Yoga, Taichi, or Qi-Gong. This definition is important because it is referenced in the Brand Protection Agreement, which outlines restrictions on activities that franchisees and their employees can engage in, both during their association with Body Brain Center and for a period after their association ends.

This definition is used to determine what activities are considered 'Prohibited Activities' under the Brand Protection Agreement. Specifically, owning, operating, or having any interest in a Competitive Business is prohibited, although an exception is made for owning 5% or less of a publicly traded company that is a Competitive Business. This restriction applies not only to franchisees but also to their employees, directors, officers, members, partners, and independent contractors, highlighting the broad scope of the non-compete obligations.

The restrictions on Competitive Businesses are further defined by geographic limitations. For instance, after completing the training program, individuals are restricted from engaging in a Competitive Business within a 15-mile radius of any Body Brain Center or Dahn Yoga Center that is operating or under construction. This geographic restriction, combined with the broad definition of what constitutes a Competitive Business, underscores the importance of understanding these terms for anyone considering a Body Brain Center franchise or employment with a franchisee.

Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities. It is essential to fully understand the scope of the Brand Protection Agreement and how it defines 'Competitive Business' to avoid potential breaches and legal ramifications. Franchisees should also be aware that these restrictions extend to their immediate family members, with a presumption of violation if a family member engages in Prohibited Activities or uses the Know-how, unless the franchisee can conclusively prove they did not disclose the Know-how.