With whom does Body Brain Center have an employee lease agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has an employee lease agreement with Body & Brain Yoga and Health Centers, Inc. (BBYHC). Under the terms of the agreement, the Company shall lease from BBYHC, certain employees of BBYHC to perform services on a part-time basis as Regional Coordinators, Assistant Regional Coordinators or Support Staff on behalf and under the supervision, of the Company in addition to the services that such employees perform for BBYHC.
Employee leasing expense under the agreement amounted to $49,800 and $51,600 for the years ended December 31, 2024 and 2023, respectively.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, Body Brain Center has an employee lease agreement with Body & Brain Yoga and Health Centers, Inc. (BBYHC). Under the terms of this agreement, Body Brain Center leases certain BBYHC employees to work part-time as Regional Coordinators, Assistant Regional Coordinators, or Support Staff. These leased employees perform services for Body Brain Center under its supervision, in addition to their regular duties for BBYHC.
For a prospective franchisee, this arrangement means that Body Brain Center relies on shared personnel from its affiliate, Body & Brain Yoga and Health Centers, Inc., to provide support and coordination at the regional level. The expenses associated with this employee leasing were $49,800 in 2024 and $51,600 in 2023.
This type of related-party transaction is not uncommon in franchising, especially when a newer franchise system is affiliated with a more established company. It allows the franchise to leverage existing expertise and resources. However, it's important for a potential franchisee to understand the allocation of these employees' time and ensure that Body Brain Center franchisees receive adequate support.
It would be prudent for a prospective Body Brain Center franchisee to inquire about the specific roles and responsibilities of these leased employees, the amount of time they dedicate to supporting franchisees, and the process for ensuring that franchisees receive the necessary assistance from these individuals.