What is the significance of the phrase 'Captive Venues' in the Body Brain Center Franchise Agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Captive Venues" means non-traditional outlets for the sale of Body & Brain products or services that are located within, or are a part of, another establishment or facility that consumers may visit for a purpose other than purchasing the Body & Brain products or services.
Examples of Captive Venues include outlets for Body & Brain products or services that are located in hotels, college campuses, airports, train stations, or within other similar types of establishments.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, 'Captive Venues' are defined as non-traditional locations where Body & Brain products or services are sold. These venues are situated within or are part of another establishment that customers visit for reasons other than specifically purchasing Body & Brain products. This definition is important because it outlines specific locations where Body Brain Center may operate or allow others to operate, even within a franchisee's protected territory.
Examples of Captive Venues provided in the FDD include locations within hotels, college campuses, airports, and train stations. This means that Body Brain Center retains the right to establish centers or grant licenses to others in these types of locations, regardless of any territorial protections granted to a franchisee. This has significant implications for franchisees, as it could lead to direct competition within their territory from venues that Body Brain Center controls or licenses.
This clause is significant for prospective franchisees because it limits the exclusivity of their protected territory. While a franchisee is granted a territory with a minimum population of 70,000, Body Brain Center reserves the right to operate or franchise locations within Captive Venues inside that territory. Therefore, a franchisee's potential customer base could be impacted by these alternative locations. Franchisees should carefully consider the potential impact of Captive Venues on their business when evaluating a franchise opportunity with Body Brain Center.