What businesses are considered 'Competitive Businesses' to a Beauty Bungalows franchise?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business that develops, operates, constructs, manages, provides, rents, or leases studios, suites, offices, or rooms to individuals, businesses, or groups offering specific services. These services include spa, barbering, beauty, cosmetology, wellness, personal care, massage, nail care, skin care, teeth-whitening, skin tanning, hair loss treatments, and hair treatment services, as well as other similar personal services. This definition is important for prospective franchisees to understand, as it directly relates to the non-compete clause in the franchise agreement.

This definition has significant implications for a Beauty Bungalows franchisee. During the term of the franchise agreement and for two years after its expiration, termination, or transfer, franchisees are restricted from participating in any capacity in a 'Competitive Business.' This restriction applies within any state where Beauty Bungalows or its franchisees operate. After termination, the restriction extends to a 20-mile radius from the franchisee's protected territory and any Beauty Bungalows studio, whether franchised, company-owned, or affiliated.

The broad scope of the 'Competitive Business' definition means franchisees must be very careful about any other business ventures they or their owners, shareholders, members, partners, officers, or directors are involved in, both during and after the franchise term. The non-compete clause also extends to online activities and multi-area marketing channels used by Beauty Bungalows. This is a fairly standard practice in franchising to protect the brand and business model. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities.