factual

What is the term length for the Body Brain Center SSA agreement?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

re Service Agreement" sections are referred to as "SSA".

THE FRANCHISE RELATIONSHIP
PROVISION SUMMARY
a. Length of the Section 4.1 Term is equal to 5 years.
franchise term
SSA: Section 1.1 Term is 1 month and automatically continues for 1 month periods until either party terminates.
b. Renewal or extension of the term Section 4.1 & 4.2 If you are in good standing, you can enter into successor franchise agreements. You can choose either 3 or 5 year renewal terms (your maximum total term is 15 years regardless of whether you choose 3 or 5 year renewal terms).
SSA: Section 1.1 The term automatically renews on a month-to-month basis until either party terminates.
c. Requirements for you to renew or extend Section 4.2 You must: not be in default; give us timely notice; sign our then current form of franchise agreement and related documents; sign a general release; pay the renewal fee (which is the same regardless of whether you select a 3 or 5 year renewal term); and remodel or upgrade your Center to comply with our then-current standards and specifications. If you renew, you may be required to sign a contract with materially different terms and conditions than the original contract.
Not Applicable The contract imposes no requirements in order to renew.
d. Termination by you Section 20.1 You can terminate at any time prior to attending the initial training program by providing written notice. You may also terminate if we fail to cure a material default or if you and we mutually agree to terminate.
SSA: Section 1.2 You can terminate only if BBYHC fails to cure a default or if you and BBYHC mutually agree to terminate.

Source: Item 17 — RENEWAL**, TERMINATION, TRANSFER, **AND DISPUTE RESOLUTION (FDD pages 34–38)

What This Means (2025 FDD)

According to Body Brain Center's 2025 Franchise Disclosure Document, the Software Service Agreement (SSA) has a term of 1 month. This term automatically continues for successive 1-month periods. Either party, Body Brain Center or the franchisee, can terminate the SSA.

This month-to-month arrangement provides flexibility for both Body Brain Center and the franchisee. The franchisee isn't locked into a long-term agreement for the software service, and Body Brain Center can adjust the terms or discontinue the service with appropriate notice. This differs from the franchise agreement itself, which has a term of 5 years, offering more stability but also a longer commitment.

It is important to note that while the SSA has a short, renewable term, the franchisee is required by the Franchise Agreement to use the BRMNet software. Therefore, while the SSA can be terminated with 30 days notice, the franchisee's obligation to use the software continues under the terms of the Franchise Agreement. A prospective franchisee should consider the implications of this requirement and how it aligns with their business operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.