What is the definition of 'Territory' in the Body Brain Center Franchise Agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ual Property from a single location that we approve in writing. We reserve all rights not expressly granted to you under this Agreement.
- 3. TERRITORIAL RIGHTS AND LIMITATIONS. Once we have approved the site for your Center, we will grant you a protected territory that will be identified on Part C of Attachment "B" (your "Territory"). Your Territory will include a minimum population of 70,000. We will not operate, or grant a franchise to a third party to operate, a Body & Brain Center or a Dahn Yoga Center that is physically located within your Territory during the Term, except as otherwise provided in this Section with respect to Captive Venues and Alternative Channels of Distribution. We reserve the right to: (i) operate Body & Brain Centers, or grant franchises or licenses to third parties to operate Body & Brain Centers, in Captive Venues that are located in your Territory; and (ii) sell competitive or identical goods or services (including under the Marks), or grant franchises or licenses to third parties to sell those goods or services (including, without limitation, Body & Brain home-based franchises), through Alternative Channels of Distribution, irrespective of whether the sales take place in your Territory.
4. TERM AND RENEWAL
- 4.1 Generally. The term of this Agreement (the "Term") will begin on the Effective Date and expire five (5) years thereafter. If this Agreement is the initial franchise agreement for your Center, you may enter into successor Body & Brain Center franchise agreements as long as you meet the conditions for renewal specified below. Each successor franchise agreement shall be the current form of franchise agreement that we use in granting Body & Brain franchises as of the expiration of the Term or renewal term, as applicable.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, the Territory is defined in Section 3 of the agreement and will be identified on Part C of Attachment B. Once Body Brain Center approves the site for the franchisee's Center, they will grant a protected territory. This territory will include a minimum population of 70,000.
Body Brain Center agrees not to operate or franchise a Body & Brain Center or Dahn Yoga Center within the franchisee's Territory during the term of the agreement. However, this protection has some limitations. Body Brain Center retains the right to operate Body & Brain Centers or grant franchises in Captive Venues (like hotels or college campuses) within the franchisee's Territory. They also reserve the right to sell goods or services through Alternative Channels of Distribution (such as internet sales or home-based franchises), even if those sales occur within the franchisee's Territory.
Attachment B further clarifies that the Territory consists of a geographic area depicted on a map. Any changes to zip codes, streets, or boundaries defining the Territory during the agreement's term will not alter the Territory's original definition unless both parties agree in writing. The boundaries remain as they were on the Effective Date, as shown on the map. This ensures clarity and protects the franchisee's defined area, while also allowing Body Brain Center to pursue alternative sales channels and non-traditional locations.