What is the 'Franchise Agreement' in the context of a Body Brain Center franchise?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
CH Authorization Form | | Attachment "E" | Brand Protection Agreement | | Attachment "F" | State Addendum |
BODY & BRAIN FRANCHISE AGREEMENT
This Franchise Agreement (this "Agreement") is entered into this ___ day of _______________, 20___ (the "Effective Date") between Body and Brain Center, LLC, an Arizona limited liability company ("we" or "us"), with principal offices at 1234 S. Power Road, Suite 250, Mesa, Arizona 85206 and the franchisee signing this Agreement below ("you").
- 1. DEFINITIONS. Capitalized terms used in this Agreement are defined either in the body of this Agreement or in Attachment "A". For capitalized terms that are defined in the body of this Agreement, Attachment "A" lists the Sections of this Agreement in which such terms are defined.
- 2. GRANT OF FRANCHISE. We hereby grant you a license to own and operate a Body & Brain Center (your "Business" or your "Center") using our Intellectual 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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, the Franchise Agreement is a legally binding contract entered into between Body and Brain Center, LLC, and the franchisee. This agreement grants the franchisee a license to operate a Body & Brain Center using Body Brain Center's intellectual property from a single, approved location. The agreement outlines the terms and conditions under which the franchisee can operate their Body & Brain Center.
The Franchise Agreement includes several key components, such as the definitions of capitalized terms used within the agreement, as detailed in the body of the agreement and Attachment A. It also specifies the territorial rights and limitations granted to the franchisee. Once Body Brain Center approves a site, they will grant a protected territory to the franchisee, which will be identified on Part C of Attachment B. This territory will include a minimum population of 70,000, and Body Brain Center will not operate or grant a franchise to a third party to operate a Body & Brain Center or a Dahn Yoga Center within the franchisee's territory during the term of the agreement.
The Franchise Agreement also covers fees, including the initial franchise fee of $10,000 (or $9,000 for an additional Body & Brain Center under specific conditions), royalty fees equal to 10% of Program Sales, and other fees such as training, renewal, and transfer fees. The agreement also addresses the franchisee's obligations to protect Body Brain Center's intellectual property, even before the agreement is signed, and outlines the unique system developed by Body Brain Center for operating the center, including logos, trade secrets, and confidential operations manuals.
Furthermore, the Franchise Agreement is listed as EXHIBIT "C" to the Franchise Disclosure Document, which summarizes certain provisions of the agreement and other information. Prospective franchisees must receive the Disclosure Document at least 14 calendar days before signing a binding agreement or making a payment to Body Brain Center. The agreement also includes a Brand Protection Agreement, outlined in Attachment E, which further protects Body Brain Center's interests.