How does the Body Brain Center FDD define 'Owner' or 'Owners'?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
"Owner" or "Owners" means any individual who owns a direct or indirect ownership interest in the franchise or the Entity that is the franchisee under this Agreement. "Owner" includes both passive and active owners.
"Permitted Transfer" means: (i) a Transfer from one Owner to another Owner who was an approved Owner prior to such Transfer; and/or (ii) a Transfer to a newly established Entity for which the approved Owners collectively own and control 100% of the ownership interests and voting power.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, the term 'Owner' or 'Owners' is defined as any individual who possesses a direct or indirect ownership stake in the franchise or the entity that operates 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 it clarifies who is bound by the terms of the Franchise Agreement. The FDD states that each Owner agrees to be personally bound by all of its terms, even if the franchisee is an entity. This means that individuals with an ownership interest, whether active or passive, are legally responsible for upholding the obligations outlined in the agreement.
Furthermore, the FDD specifies that if a franchisee purchases multiple franchises, there must be at least one Owner for each center. An Owner cannot manage multiple centers. If the number of franchises exceeds the number of Owners, the franchisee must hire a manager for each center not managed by an Owner. This manager must be approved by Body & Brain Center, complete the initial training program, and sign a Brand Protection Agreement. This requirement ensures that each Body & Brain Center receives adequate supervision and adheres to the franchisor's standards.