What obligations does Body Brain Center have regarding the granting of a protected territory to a franchisee?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, once the site for a franchisee's center has been approved, Body Brain Center will grant a protected territory. This territory will be identified on Part C of Attachment "B" of the Franchise Agreement. The protected territory will include a minimum population of 70,000. During the term of the agreement, Body Brain Center will not operate, nor grant a franchise to a third party to operate, a Body & Brain Center or a Dahn Yoga Center physically located within the franchisee's territory.
However, Body Brain Center retains certain rights within the protected territory. They reserve the right to operate Body & Brain Centers, or grant franchises or licenses to third parties to operate Body & Brain Centers, in Captive Venues located within the franchisee's territory. Captive Venues are defined as non-traditional outlets such as those located in hotels, college campuses, airports, or train stations. Body Brain Center also reserves the right to sell competitive or identical goods or services, including through Body & Brain home-based franchises, through Alternative Channels of Distribution, regardless of whether the sales occur within the franchisee's territory. Alternative Channels of Distribution include internet sales, catalogs, and sales through stores selling health or healing products.
This means that while Body Brain Center grants a protected territory with a minimum population, the protection is limited. A franchisee may face competition from other Body & Brain Centers in non-traditional locations within their territory, as well as from online sales and other distribution channels. The franchisee's exclusive rights are primarily focused on traditional Body & Brain Center locations. Prospective franchisees should carefully consider these limitations and evaluate the potential impact of these exceptions on their business.