What constitutes a 'threat' to materially breach a Beauty Bungalows franchisee's lease?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
PPENDIX G TO FRANCHISE AGREEMENT**
LEASE RIDER
THIS LEASE RIDER is entered into between the undersigned parties.
WHEREAS, Company and Franchisee are parties to a Franchise Agreement dated ____________________, (the "Franchise Agreement"); and
WHEREAS, the Franchise Agreement provides that Franchisee will operate a Beauty Bungalows franchise business ("Business") at a location that Franchisee selects and Company accepts; and
WHEREAS, Franchisee and Landlord propose to enter into the lease to which this Rider is attached (the "Lease"), pursuant to which Franchisee will occupy premises located at the address listed on the signature page below (the "Premises") for the purpose of constructing and operating the Business in accordance with the Franchise Agreement; and
WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;
NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
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- During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Business and for no other purpose.
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- Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the Beauty Bungalows system as Company may from time to time prescribe for the Business.
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- Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
Beauty Bungalows Franchising, LLC 257 Wake Forest Road Costa Mesa, CA 92626 Franchise@BeautyBungalows.com
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Beauty Bungalows Franchise Disclosure Document, the lease rider specifies conditions related to the franchisee's lease agreement. Specifically, the franchisee cannot use the premises for any purpose other than operating the Beauty Bungalows business. The franchisee is also required to use the trademarks, service marks, signs, decor items, and color schemes as prescribed by Beauty Bungalows. The landlord is obligated to provide Beauty Bungalows with copies of all communications sent to the franchisee regarding the lease and premises.
According to the lease rider, the franchisee is not allowed to assign the lease or sublet the premises without the prior written consent of Beauty Bungalows. Furthermore, the landlord cannot consent to any assignment or subletting without verifying that Beauty Bungalows has provided its written consent. Any amendments or modifications to the lease that could materially affect the provisions of the lease rider require the prior written consent of Beauty Bungalows. The provisions of the lease rider take precedence over any conflicting terms in the lease.
While the FDD excerpt outlines several restrictions and obligations related to the lease, it does not explicitly define what actions or omissions would constitute a 'threat' to materially breach the lease. It indicates what actions would violate the lease agreement, such as using the premises for non-Beauty Bungalows activities, unauthorized assignment or subletting, or amending the lease without Beauty Bungalows' consent. A prospective franchisee should seek clarification from Beauty Bungalows regarding specific scenarios that could be considered a material breach and the potential consequences.