What is the geographic scope of the non-competition covenant after termination or expiration of a Body Brain Center franchise?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| THE FRANCHISE RELATIONSHIP | ||
|---|---|---|
| PROVISION | SUMMARY | |
| m. Conditions for our approval of transfer | Section 19.2 | Transferee must meet our qualifications, successfully complete the initial training program (and pay initial training fee), obtain all required licenses and permits, and sign a new franchise agreement for the remainder of the term. You must be compliant with your Franchise Agreement, assign your lease if applicable, pay us the transfer fee and sign a general release and subordination agreement. We must notify you that we do not intend to exercise our right of first refusal. |
| SSA: Section 10.3 | Must obtain BBYHC’s approval in writing. | |
| n. Our right of first refusal to acquire your business | Section 19.5 | We have the right to match any bona fide, arms-length offer for your business. |
| SSA: Not Applicable | Not Applicable | |
| o. Our option to | Section 21.2 | We have the option to purchase your Business or certain of |
| purchase your | your assets on the expiration or termination of the Franchise | |
| business | Agreement. | |
| SSA: Not Applicable | Not Applicable | |
| p. Your death or | Section 19.4 | Within 6 months, franchise must be assigned by estate to an |
| disability | assignee in compliance with conditions for other transfers. | |
| SSA: Not Applicable | Not Applicable | |
| q. Non-competition covenants during the term of the franchise | Section 14.2 & 14.3 | No involvement in competing business; comply with non- solicitation and non-disclosure covenants. |
| SSA: Section 4.4 | May not reverse engineer, decompile, reproduce, publish, sell, sublicense, transfer, rent or distribute the software. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 14.4 [See also Section 5 of Training Agreement] | No involvement for 2 years in competing business within 15 miles of any Body & Brain Center or Dahn Yoga Center; comply with non-solicitation and non-disclosure covenants; cease use of know-how and trade secrets. If you sign a Training Agreement but do not sign a Franchise Agreement, you will be subject to similar obligations under Section 5 of the Training Agreement. |
| SSA: Section 4.4 | May not reverse engineer, decompile, reproduce, publish, sell, sublicense, transfer, rent or distribute the software. |
Source: Item 17 — RENEWAL**, TERMINATION, TRANSFER, **AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is restricted from involvement in a competing business. This restriction applies for a period of 2 years within a 15-mile radius of any Body & Brain Center or Dahn Yoga Center. Additionally, the franchisee must comply with non-solicitation and non-disclosure covenants and cease using the Body Brain Center's know-how and trade secrets.
This non-compete clause means that after leaving the Body Brain Center franchise system, a former franchisee cannot operate or be involved in a similar business within the specified geographic area for the duration of the restricted period. This is designed to protect Body Brain Center's market share and confidential information.
It is important to note that if an individual signs a Training Agreement but does not proceed to sign a Franchise Agreement with Body Brain Center, they will still be subject to similar non-compete obligations as outlined in Section 5 of the Training Agreement. This highlights the importance of carefully reviewing all agreements before signing, as these obligations can significantly impact future business opportunities.