What non-competition covenants are Body Brain Center franchisees subject to after the franchise is terminated or expires?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| THE FRANCHISE RELATIONSHIP | ||
|---|---|---|
| PROVISION | SUMMARY | |
| 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 the 2025 Body Brain Center Franchise Disclosure Document, franchisees are subject to certain non-competition covenants after the franchise is terminated or expires. Specifically, for a period of two years, franchisees cannot be involved in any competing business within 15 miles of any Body & Brain Center or Dahn Yoga Center. Additionally, franchisees must continue to comply with non-solicitation and non-disclosure covenants, and they must cease using any Body Brain Center know-how and trade secrets.
This means that upon termination or expiration of the franchise agreement, a former Body Brain Center franchisee is restricted from operating a similar business or working for a competitor within a 15-mile radius of any Body & Brain Center or Dahn Yoga Center location for two years. This restriction aims to protect Body Brain Center's market share and confidential information. The franchisee is also prohibited from soliciting existing Body Brain Center clients or disclosing confidential information acquired during their time as a franchisee.
Furthermore, the FDD states that if an individual signs a Training Agreement but does not sign a Franchise Agreement, they will be subject to similar obligations under Section 5 of the Training Agreement. This implies that even if someone only undergoes training with Body Brain Center but does not proceed to become a franchisee, they are still bound by certain non-competition and confidentiality obligations. This is a crucial point for anyone considering the training program, as it imposes restrictions even without a fully executed franchise agreement.