Are sales through the internet considered alternative channels of distribution for Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to sell or license others to sell competitive or identical goods or services (whether under the Marks or under different trademarks) through alternative channels of distribution. An alternative channel of distribution means any channel of distribution other than retail sales made to customers while physically present in a Body & Brain Center. Examples of alternative channels of distribution include: (i) sales over the Internet or through sales catalogs; (ii) sales through stores selling health or healing products (other than Body & Brain Centers operating under the Marks or Dahn Yoga Centers); and (iii) on-site sales to groups at a business (i.e., worksite classes) or customers at their homes. Body & Brain home-based franchisees market and sell through alternative channels of distribution. Therefore, they may operate within your territory. Sales through alternative channels of distribution are excluded from your territorial rights. This means that we may sell or license a third party to sell competitive or identical goods orservicesthrough alternative channels of distribution (whether under the Marks or different trademarks) anywhere within your territory. You are not entitled to any compensation for sales that take place through alternative channels of distribution.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, sales over the Internet are considered alternative channels of distribution. This means that Body Brain Center retains the right to sell or license others to sell competitive or identical goods or services through the internet, regardless of a franchisee's protected territory.
For a prospective Body Brain Center franchisee, this has significant implications. The franchisee's protected territory only applies to retail sales made to customers physically present at their Body & Brain Center. Body Brain Center can engage in or authorize sales through other avenues, such as the internet, without providing any compensation to the franchisee, even if these sales occur within the franchisee's territory.
The FDD also specifies other examples of alternative channels of distribution, including sales through health or healing product stores (excluding other Body & Brain Centers or Dahn Yoga Centers) and on-site sales to groups at businesses or customers' homes. Body Brain Center home-based franchisees specifically market and sell through these alternative channels, and they are permitted to operate within a Body Brain Center franchisee's territory. This could create competition within a franchisee's territory from both the franchisor and other franchisees using alternative channels of distribution.