What is the definition of 'Owners' in the context of the Body Brain Center franchise agreement?

According to Body Brain Center's 2025 Franchise Disclosure Document, an "Owner" or "Owners" refers to any individual who possesses a direct or indirect ownership stake in the franchise or the entity acting as the franchisee under the Franchise Agreement. This definition encompasses both passive and active owners, indicating that the level of involvement in the day-to-day operations does not affect their status as an Owner.

This definition is important because the Franchise Agreement stipulates that each Owner agrees to be personally bound by all of its terms, regardless of whether the franchisee is an entity. Furthermore, if a franchisee purchases multiple franchises, there must be at least one Owner for each center, and an Owner is restricted from managing multiple centers simultaneously. If the number of franchises exceeds the number of Owners, the franchisee is required to hire a manager for each center not managed by an Owner.

These stipulations ensure that Body Brain Center maintains a certain level of oversight and accountability at each franchise location. By requiring Owners to be personally bound by the agreement and limiting the number of centers an Owner can manage, Body Brain Center aims to ensure that each location receives adequate attention and adheres to the brand's standards. The requirement to hire approved managers when Owners are not present further reinforces this commitment to operational standards and brand consistency.

For a prospective Body Brain Center franchisee, this definition highlights the significant responsibilities and limitations placed on Owners. It is crucial for potential franchisees to understand that they will be personally liable under the Franchise Agreement and that their ability to manage multiple locations may be restricted. This may influence decisions regarding the number of franchises to purchase and the need for hiring qualified managers to oversee operations.