What is the deadline for the legal representatives of a deceased Beauty Bungalows franchisee to apply for the right to transfer the franchisee's rights to the next of kin or legatee?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.08 Death of Franchisee. Upon the death of an individual Franchisee, the rights granted by this Agreement may pass (without payment of any Transfer Fee) to the next of kin or legatees, provided that Franchisee's legal representatives will within one hundred twenty (120) calendar days of Franchisee's death apply in writing to Franchisor for the right to transfer to the next of kin or legatee Franchisee's rights under this Agreement. Franchisor will not unreasonably withhold permission so long as the proposed transferees meet each of the then-current requirements of franchisees.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, if a franchisee dies, their legal representatives have a specific timeframe to apply for the right to transfer the franchise to the next of kin or legatee. The legal representatives must apply in writing to Beauty Bungalows within 120 calendar days of the franchisee's death to request the transfer of the franchisee's rights under the Franchise Agreement.
Beauty Bungalows will not unreasonably withhold permission for the transfer, provided that the proposed transferees meet the then-current requirements of franchisees. This means the potential new franchisee (the next of kin or legatee) will need to satisfy the brand's standards for franchisees at that time.
This clause provides a mechanism for the continuation of the Beauty Bungalows franchise in the event of the franchisee's death, ensuring that the business can pass to their heirs or beneficiaries, subject to meeting the franchisor's approval criteria. It balances the franchisee's desire to pass on their business with Beauty Bungalows' need to maintain brand standards and franchisee qualifications.