Can a Body Brain Center franchisee have an interest in a Competitive Business after the term?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.4 Unfair Competition After Term.
During the Post-Term Restricted Period, you and your Owners agree not to engage in any Prohibited Activities.
Notwithstanding the foregoing, you and your Owners may have an interest in a Competitive Business during the Post-Term Restricted Period as long as the Competitive Business is not located within, and does not provide competitive goods or services to customers who are located within, the Restricted Territory.
If you or an Owner engages in a Prohibited Activity during the Post-Term Restricted Period (other than having an interest in a Competitive Business that is permitted under this Section), then the Post-Term Restricted Period applicable to you or the noncompliant Owner, as applicable, shall be extended by the period of time during which you or the noncompliant Owner, as applicable, engaged in the Prohibited Activity.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, a franchisee and their owners can have an interest in a Competitive Business during the Post-Term Restricted Period under certain conditions. Specifically, the Competitive Business must not be located within the Restricted Territory and must not provide competitive goods or services to customers located within the Restricted Territory.
However, if a franchisee or owner engages in a Prohibited Activity during the Post-Term Restricted Period, other than having a permitted interest in a Competitive Business, the Post-Term Restricted Period will be extended by the duration of the prohibited activity.
'Prohibited Activities' include owning, operating, or having any interest in a Competitive Business (excluding owning 5% or less in a publicly traded company), diverting business, selling Body & Brain products/services to another franchisee's customers without consent, or inducing customers to transfer their business away from Body & Brain. A 'Competitive Business' is defined as one that competes with Body & Brain by providing brain-based education, Yoga, Taichi, or Qi-Gong.