How is the Body Brain Center franchisee's protected territory defined?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ual 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.
4. TERM AND RENEWAL
- 4.1 Generally. The term of this Agreement (the "Term") will begin on the Effective Date and expire five (5) years thereafter. If this Agreement is the initial franchise agreement for your Center, you may enter into successor Body & Brain Center franchise agreements as long as you meet the conditions for renewal specified below. Each successor franchise agreement shall be the current form of franchise agreement that we use in granting Body & Brain franchises as of the expiration of the Term or renewal term, as applicable. The terms and conditions of the successor franchise agreement (including financial and territorial terms) may vary materially and substantially from the terms and conditions of this Agreement. Each renewal term will be for either three (3) or five (5) years, at your option. The maximum total term (including initial term and all renewal terms) shall be 15 years. You will have no further right to operate your Center following the expiration of the 15th year unless we grant you another franchise in our sole discretion. If this Agreement is a successor franchise agreement, the renewal provisions in your original franchise agreement will govern your remaining renewal rights, if any.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, once the franchisor approves a site for the franchisee's center, they will grant a protected territory. This territory is identified on Part C of Attachment "B" and will include a minimum population of 70,000. During the term of the agreement, 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 physically located within the franchisee's territory.
However, Body Brain Center retains certain rights within the franchisee's territory. They reserve the right to operate Body & Brain Centers or grant franchises or licenses to third parties to operate Body & Brain Centers in Captive Venues, such as hotels or college campuses, even if these are located within the franchisee's territory. Additionally, Body Brain Center reserves the right to sell competitive or identical goods or services, including through alternative channels of distribution like internet sales or home-based franchises, regardless of whether these sales occur within the franchisee's territory.
Attachment "B" to the franchise agreement further clarifies the territory details. It states that the site selection area is not the franchisee's territory and has no associated protections. The approved site for the Body & Brain Center is determined and agreed upon by both parties. The territory itself is depicted on a map attached to the agreement, with the geographic area defined. Any changes to zip codes, streets, or boundaries during the term of the agreement will not alter the territory's definition unless otherwise agreed upon in writing, ensuring the territory remains as defined on the effective date.