What is Body Brain Center's policy regarding the short-term lease recognition exemption?

Based on the 2025 Franchise Disclosure Document, Body Brain Center's financial statements include information about their lease commitments. Specifically, the company leases its operating facility under a non-cancellable operating lease. Additionally, Body Brain Center has an agreement with Body & Brain Yoga and Health Centers, Inc. (BBYHC) that allows them to use a portion of BBYHC's premises, subject to the terms of their premises use agreement.

The FDD includes a schedule of minimum future yearly rental payments related to the operating facility lease as of December 31, 2023. This schedule provides a breakdown of the financial obligations Body Brain Center has committed to over the coming years for its operating facility. For a prospective franchisee, this indicates that Body Brain Center itself has long-term lease obligations that impact its financial planning and stability.

However, the provided excerpts from the FDD do not specifically address Body Brain Center's policy regarding the short-term lease recognition exemption. The documents detail the existence of lease agreements and the associated financial commitments, but they do not elaborate on how Body Brain Center accounts for or manages short-term leases, or whether they take advantage of any exemptions related to short-term lease recognition under accounting standards. A prospective franchisee should ask Body Brain Center directly about their policies and practices related to short-term leases and any applicable exemptions.