What is the exception to the territorial rights granted to a Body Brain Center franchisee?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body & Brain Center Franchise Disclosure Document, while franchisees are granted a protected territory of at least 70,000 in population, Body & Brain Center retains specific rights to operate within that territory under certain circumstances.
Specifically, Body & Brain Center reserves the right to operate Body & Brain Centers, or grant franchises or licenses to third parties to operate Body & Brain Centers, in Captive Venues that are located in a franchisee's Territory. They also reserve the right to 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 a franchisee's Territory.
This means that even within a franchisee's protected territory, Body & Brain Center can establish locations in Captive Venues or utilize Alternative Channels of Distribution to sell similar services, potentially creating competition for the franchisee. Prospective franchisees should carefully consider these exceptions and how they might impact their business before investing in a Body & Brain Center franchise.