What constitutes 'reasonable business judgment' by Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
e potential for success of the Business and Franchisor may reject any location in its sole discretion, but consent will not be unreasonably withheld.
- 8.03 Equipment, Inventory, Advertising and Services. Franchisor may specify or pre-approve certain furniture, fixtures and equipment, interior design firms and beauty supplies used in the Business, and Franchisee must comply with such specifications and approvals. Franchisor, in its sole discretion, may negotiate marketing programs with suppliers and obtain advertising allowances or rebates for doing so and may utilize such allowances or rebates in any manner in which Franchisor elects.
- 8.04 Initial Training. If this is Franchisee's first franchise agreement with Franchisor, Franchisor will provide an initial training program as Franchisor may reasonably determine to be appropriate.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Beauty Bungalows Franchise Disclosure Document, the term 'reasonable business judgment' is not explicitly defined. However, the FDD does provide some context regarding decisions that Beauty Bungalows makes in its 'sole discretion' or situations where consent 'will not be unreasonably withheld'.
For example, Beauty Bungalows may specify or pre-approve certain furniture, fixtures, equipment, interior design firms, and beauty supplies. Beauty Bungalows also has the discretion to negotiate marketing programs with suppliers and utilize any advertising allowances or rebates. Furthermore, Beauty Bungalows will provide an initial training program that it may reasonably determine to be appropriate if it is the franchisee's first agreement with them.
In regards to site selection, Beauty Bungalows may reject any location in its sole discretion, but consent will not be unreasonably withheld. Franchisees must also follow the copyright guidelines as specified by Beauty Bungalows in the Manual, and which approval may not be unreasonably withheld, conditioned, or delayed. While these examples don't define 'reasonable business judgment', they provide insight into how Beauty Bungalows exercises its authority and what a franchisee might consider 'reasonable' within the context of the franchise agreement. A prospective franchisee should seek clarification from Beauty Bungalows on what specific criteria or standards they use to make these judgments.