What conditions must be met for a Beauty Bungalows franchisee to transfer the franchise to a qualified third party?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, the Lead Fee will not apply if the transferee is an existing franchisee of Franchisor;
(h) in the case of a sale to a qualified third-party pursuant to a bona fide written offer, the provision of Sections 14.07 and 14.09 have been satisfied and Franchisee provides Franchisor with a copy of the signed purchase agreement and related documents as reasonably requested by Franchisor and proof of payment of purchase price in a format specified by Franchisor;
(i) the proposed transferee executes a separate franchise agreement with Franchisor, using the then-current form of franchise agreement;
(j) the proposed transferee pays for, attends, and satisfactorily completes the training program for new franchisees unless:
(i) the transferee is a current franchisee in good standing in the System, or
(ii) the transferee is and has been a Manager for a period of one year or more of a Franchise in good standing;
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, a franchisee can sell to a qualified third party if certain conditions are met. Specifically, Sections 14.07 and 14.09 of the franchise agreement must be satisfied. The franchisee must also provide Beauty Bungalows with a copy of the signed purchase agreement and any related documents reasonably requested by Beauty Bungalows, as well as proof of payment of the purchase price in a format specified by them.
Additionally, the proposed transferee must execute a separate franchise agreement with Beauty Bungalows, using the then-current form of the franchise agreement. This ensures that the new franchisee is bound by the most up-to-date terms and conditions of the Beauty Bungalows franchise system.
The proposed transferee is also required to pay for, attend, and satisfactorily complete the training program for new franchisees. This requirement is waived if the transferee is already a current franchisee in good standing within the Beauty Bungalows system, or if the transferee has been a manager of a Beauty Bungalows franchise in good standing for at least one year. These exceptions recognize prior experience within the Beauty Bungalows system, potentially reducing the need for comprehensive retraining.