What is the geographic scope of the Body Brain Center Franchise Agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ss" 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.
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.
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 grants a protected territory to the franchisee once the site for their center has been approved. This territory is detailed in Part C of Attachment "B" and will include a minimum population of 70,000 residents. During the term of the agreement, Body & Brain Center will not operate or franchise a third party to operate a Body & Brain Center or 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 in "Captive Venues" (locations like hospitals, universities, or corporate offices) within the franchisee's territory. Additionally, they can sell competitive or identical goods or services, including through home-based franchises or other "Alternative Channels of Distribution," regardless of whether these sales occur within the franchisee's territory.
The agreement also defines a "Restricted Territory" as the geographic area within a 15-mile radius of the franchisee's center and all other Body & Brain Centers or Dahn Yoga and Health Centers operating or under construction as of the effective date. This restricted territory is relevant to post-term non-compete obligations. Note that this 15-mile radius may be reduced to 10 miles if a court deems the 15-mile radius too broad to be enforceable.