What is the 'Restricted Period' mentioned in the Body Brain Center agreement?

According to Body Brain Center's 2025 Franchise Disclosure Document, the "Restricted Period" is generally defined as the two-year period following the termination of an individual's employment, role as a director, officer, member, partner, or independent contractor of a Body & Brain Center franchisee. This restriction is in place to prevent unfair competition after someone leaves their position with a franchisee. However, if a court finds that the two-year period is too long to be enforceable, the "Restricted Period" will be reduced to one year.

During this Restricted Period, the individual is prohibited from engaging in "Prohibited Activities," which include owning, operating, or having an interest in a Competitive Business within a 15-mile radius of the former Body & Brain Center. Prohibited Activities also encompass actions like diverting business away from Body & Brain, selling products or services to existing Body & Brain members without consent, or inducing customers to transfer their business away from Body & Brain. If an individual engages in any of these Prohibited Activities during the Restricted Period, the period will be extended by the amount of time they were engaging in the prohibited activity.

Immediate family members are also addressed in the agreement. If a family member engages in Prohibited Activities or uses or discloses confidential information ("Know-how"), it is presumed that the former employee or associate violated the agreement by disclosing Know-how to them. However, the individual can challenge this presumption by providing evidence that they did not disclose the Know-how. This clause highlights Body Brain Center's concern about protecting its trade secrets and proprietary information even through family connections.