What goods and services are source restricted for a Body Brain Center franchise?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ases – Generally**
We require that you purchase or lease certain "source restricted" goods and services for the development and ongoing operation of your Business. By "source restricted," we mean that the good or service must meet our specifications and/or must be purchased from an approved or designated supplier (in some cases, an exclusive designated supplier, which may be us or an affiliate). Our specifications and list of approved and designated suppliers are contained in the Manual. We will notify you within 30 days of any changes to our specifications or list of approved or designated suppliers. We may notify you of these changesin various ways, including written or electronic correspondence, verbal or telephonic notification, amendments or updates to the Manual, bulletins, or other means of communication.
Supplier Criteria
Our criteria for evaluating a supplier include standards for quality, delivery, performance, design, appearance and price of the product or service as well asthe dependability, reputation and financial viability of the supplier. Upon your request, we will provide you with any objective specifications pertaining to our evaluation of a supplier, although certain important subjective criteria (e.g., product appearance, design, functionality, etc.) are important to our evaluation but cannot be described in writing.
If you want to purchase or lease a source restricted item from a non-approved supplier, you must send us a written request for approval and submit any additional information that we request. We may require that you send us samples from the supplier for testing. We may also require that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within 60 days after we receive your request for approval plus all additional information and samples that we require. We may, at our option, reinspect the facilities and products of any approved supplier and revoke our approval if the supplier fails to meet any of our then-current criteria.
Current Source Restricted Items
As described below in more detail, we require that you purchase the following source restricted goods and services for use in the development and ongoing operation of your Business: all inventory, marketing materials, computer system, music, lease and insurance policies. We estimate that between 85% and 95% of the total purchases that will be required to establish and operate your Business will consist of source restricted goods or services.
Inventory
You are not required to purchase any inventory for resale although you have the option to do so. All inventory that you purchase must meet our standards and specifications and must be purchased only from designated or approved suppliers. BBYHC's merchandising division, HSP World, is our approved supplier for certain inventory items, including books, uniforms, clothing, healing products, dietary supplements, and skin care products. Inventory items can also be purchased from other suppliers, as long as we approve them.
Marketing Materials
All of your marketing materials must comply with our standards and requirements. We must approve all of your marketing materials before you use them. You may purchase marketing materials from any supplier of your choosing.
Computer System
Your computer system (including software and hardware) must meet our standards and specifications. You may purchase your computer from any supplier of your choosing. You must also utilize the web-based point of sale system that we specify (currently, BRMNet Software), which you will license from our affiliate BBYHC.
Music
You may only play the music that we authorize from time to time relating to the operation of your Business. We do not offer licensing for any particular music, that must be obtained through Performance Rights Organizations, such as ASCAP, BMI or SESAC. However, the music played at Body and Brain locations is an important aspect of brand continuity, so we require franchisees to get advanced authorization of music.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–19)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, franchisees are required to purchase or lease certain "source restricted" goods and services for the development and ongoing operation of their business. Source restricted means that the good or service must meet Body Brain Center's specifications and/or must be purchased from an approved or designated supplier. These specifications and the list of approved and designated suppliers are detailed in the Manual, with franchisees to be notified within 30 days of any changes.
Currently, Body Brain Center requires franchisees to purchase source restricted goods and services including all inventory, marketing materials, computer systems, music, lease agreements, and insurance policies. It is estimated that 85% to 95% of the total purchases required to establish and operate a Body & Brain Center business will consist of source restricted goods or services. For inventory, while franchisees are not required to purchase any for resale, any inventory purchased must meet Body Brain Center's standards and be purchased from approved suppliers, such as BBYHC's merchandising division, HSP World, for items like books, uniforms, clothing, healing products, dietary supplements, and skin care products.
For marketing materials, all materials must comply with Body Brain Center's standards and be approved by them, though franchisees can purchase these from any supplier. The computer system, including both software and hardware, must also meet Body Brain Center's standards, and franchisees must use the specified web-based point of sale system, BRMNet Software, licensed from BBYHC, at a monthly fee of $40. Franchisees may only play authorized music and must obtain advanced authorization of music, though licensing must be obtained through Performance Rights Organizations. While Body Brain Center does not review lease terms, franchisees must use their best efforts to ensure the landlord signs the Lease Addendum attached to the Franchise Agreement, and Body Brain Center may require franchisees to find a new site if the landlord refuses to sign.
Finally, franchisees must obtain the required insurance coverage from a carrier with an A.M. Best's rating of A or better, including property insurance, comprehensive general liability insurance (minimum $1,000,000 per occurrence and $2,000,000 in the aggregate), worker's compensation insurance, and any other coverage required in the Manual. All insurance policies must name Body Brain Center as additional insureds, contain a waiver of subrogation rights against them, and provide 10 days' prior written notice of any changes to the policy.