What does 'source restricted' mean regarding goods and services for a Body Brain Center franchise?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ases – Generally**
We require that you purchase or lease certain "source restricted" goods and services for the development and ongoing operation of your Business. By "source restricted," we mean that the good or service must meet our specifications and/or must be purchased from an approved or designated supplier (in some cases, an exclusive designated supplier, which may be us or an affiliate). Our specifications and list of approved and designated suppliers are contained in the Manual. We will notify you within 30 days of any changes to our specifications or list of approved or designated suppliers. We may notify you of these changesin various ways, including written or electronic correspondence, verbal or telephonic notification, amendments or updates to the Manual, bulletins, or other means of communication.
Supplier Criteria
Our criteria for evaluating a supplier include standards for quality, delivery, performance, design, appearance and price of the product or service as well asthe dependability, reputation and financial viability of the supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–19)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, "source restricted" goods and services are those that franchisees are required to purchase or lease from approved or designated suppliers, or that must meet the franchisor's specifications. This applies to items necessary for the development and ongoing operation of the Body Brain Center business. The specifications and lists of approved suppliers are detailed in the Body Brain Center Manual, and franchisees will be notified of any changes within 30 days through various communication methods.
The FDD indicates that a significant portion of a franchisee's total purchases, estimated between 85% and 95%, will consist of these source-restricted goods or services. Currently, source-restricted items for Body Brain Center include inventory, marketing materials, computer systems, music, leases, and insurance policies. While franchisees can choose suppliers for marketing materials and computer systems, these must still meet Body Brain Center's standards and requirements. For certain inventory items like books, uniforms, clothing, healing products, dietary supplements, and skin care products, HSP World, BBYHC's merchandising division, is an approved supplier, though other suppliers can be used if approved by Body Brain Center.
If a Body Brain Center franchisee wishes to use a non-approved supplier for a source-restricted item, they must submit a written request for approval, along with any additional information or samples requested by Body Brain Center. Body Brain Center may also inspect the supplier's facilities. A decision on approval or disapproval will be provided within 60 days of receiving the request and all required information. Body Brain Center retains the right to re-inspect approved suppliers and revoke approval if they fail to meet current criteria. This system ensures that all goods and services used in the franchise meet Body Brain Center's standards for quality, performance, and brand consistency.