What constitutes a 'Destruction Event' that requires notification to Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2. Damaged Operating Assets.
If the property, equipment, and/or vehicles ("Operating Assets") used in the operation of any Franchised Business in your Development Schedule are destroyed or damaged by any cause beyond your control such that they may no longer continue to be utilized for the operation of a particular Franchised Business, you must immediately give us notice of such destruction or damage ("Destruction Event"). You must diligently work to repair and replace the Operating Assets of your Franchised Business as soon as possible to resume operation of your Franchised Business. If a Franchised Business is closed due to a Destruction Event, the Franchised Business will continue to be deemed "in operation" for the purpose of this Agreement for up to 90 days after the Destruction Event occurs. If a Franchised Business (i) is closed in a manner other than those described in this Section 3.2 or as otherwise agreed by us in writing or (ii) fails to reopen within 90 days after a Destruction Event, then we may exercise our rights under Section 6.2 (Our Remedies). In the event the Operating Assets are completely destroyed or otherwise incapable of being repaired following a Destruction Event, we will not exercise the remedies set forth under Section 6.2 provided, that (a) within the 30 days after the Destruction Event you have made arrangements with us or our designated supplier to obtain new Operating Assets for use in your Franchised Business; and (b) you are open and operating your Franchised Business in the protected territory within ninety (90) days of the Destruction Event.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, a 'Destruction Event' occurs when the operating assets of a franchised business are destroyed or damaged by causes beyond the franchisee's control, preventing their continued use. Operating assets include property, equipment, and vehicles used in the business.
If such an event occurs, the franchisee must immediately notify Beauty Bungalows. The franchisee is then expected to diligently repair or replace the damaged assets to resume business operations as quickly as possible. For up to 90 days following a Destruction Event, the franchised business is still considered 'in operation' under the agreement.
However, if the Beauty Bungalows franchise remains closed for more than 90 days due to the Destruction Event, or if it closes for reasons not covered in this section or without Beauty Bungalows' written agreement, Beauty Bungalows may exercise its remedies as described in Section 6.2 of the agreement. If the operating assets are completely destroyed and cannot be repaired, Beauty Bungalows will not pursue those remedies if the franchisee arranges for new operating assets within 30 days of the event and reopens the business within 90 days.