What is the required action for Body Brain Center to grant 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, after Body Brain Center approves the site for a franchisee's center, they 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.
Body Brain Center commits not to operate or franchise a Body & Brain Center or Dahn Yoga Center within the franchisee's territory during the term of the agreement. However, this protection has exceptions. Body Brain Center retains the right to operate or franchise Body & Brain Centers in Captive Venues (like hotels or college campuses) within the franchisee's territory. They also reserve the right to sell goods or services through Alternative Channels of Distribution (like internet sales or home-based franchises), even if those sales occur within the franchisee's territory.
For a prospective franchisee, this means that while they will receive a protected territory with a minimum population of 70,000, Body Brain Center retains significant rights to operate or franchise other outlets within that same territory through captive venues and alternative distribution channels. This could potentially impact the franchisee's revenue and market share. It is important for a prospective franchisee to carefully consider these exceptions and evaluate the potential impact on their business before investing in a Body Brain Center franchise.