What is the Body Brain Center's definition of 'unfair competition' during the term of the franchise agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Unfair Competition During Term. You and your Owners agree not to unfairly compete with us during the Term by engaging in any of the following activities ("Prohibited Activities"): (i) owning, operating or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative or agent) in any Competitive Business, other than owning an interest of five percent (5%) or less in a publicly traded company that is a Competitive Business; (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees); (iii) selling any Body & Brain products or services to any person who is a current member of or has a customer agreement with another franchisee or company-owned Body & Brain business without the consent of the owner(s) of the business with whom the person is a member or customer; or (iv) inducing any customer of ours (or of one of our affiliates or franchisees) to transfer their business to you or to any other person that is not then a franchisee of ours.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, unfair competition during the term of the agreement is defined through a list of 'Prohibited Activities'. These activities include owning, operating, or having any interest in a Competitive Business, unless it's a minor stake of 5% or less in a publicly traded company. A 'Competitive Business' is one that offers brain-based education, Yoga, Taichi, or Qi-Gong.
Additionally, franchisees are prohibited from diverting or attempting to divert business away from Body Brain Center, its affiliates, or other franchisees. This means a franchisee cannot try to take customers or opportunities that would otherwise go to the franchisor or other franchisees within the system.
Furthermore, franchisees cannot sell Body Brain Center products or services to individuals who are already members or customers of another Body Brain Center location without the consent of that location's owner. Lastly, franchisees are barred from inducing customers of Body Brain Center, its affiliates, or other franchisees to transfer their business to the franchisee or any other entity that is not a Body Brain Center franchisee. These restrictions are designed to protect the Body Brain Center brand and the interests of all franchisees within the system.