If a Body Brain Center franchisee is an entity, what information must they provide to Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- **12.
FRANCHISEE AS ENTITY**.
If you are an Entity, you agree to provide us with a list of all of your Owners.
All Owners of the Entity (whether direct or indirect) are jointly and severally responsible for
the Entity's performance of this Agreement and each Owner is bound by all of the terms of this Agreement. Upon our request, you must provide us with a resolution of the Entity authorizing the execution of this Agreement, a copy of the Entity's organizational documents and a current Certificate of Good Standing (or the functional equivalent thereof). You represent that the Entity is duly formed and validly existing under the laws of the state of its formation or incorporation.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, if a franchisee is an entity, they must provide Body Brain Center with a list of all of the entity's owners. All owners, whether direct or indirect, are jointly and severally responsible for the entity's performance under the Franchise Agreement and are bound by its terms.
Additionally, upon request from Body Brain Center, the franchisee must provide a resolution from the entity authorizing the execution of the Franchise Agreement. They must also supply a copy of the entity's organizational documents, such as articles of incorporation or formation documents for an LLC. Finally, the franchisee must provide a current Certificate of Good Standing (or its equivalent) to verify that the entity is properly registered and in compliance with the laws of its state of formation.
This requirement ensures that Body Brain Center knows who the responsible parties are behind the franchisee entity and that those parties are legally bound to the Franchise Agreement. It also allows Body Brain Center to verify the entity's legal status and authority to enter into the agreement. This is a common practice in franchising to protect the franchisor's interests and ensure accountability.