What is the definition of 'Owners' in the context of a Beauty Bungalows franchise agreement when the franchisee is an entity?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, when the franchisee is a corporation, limited liability company, partnership, or other entity, the term 'Owners' refers to all individuals or entities holding a legal or beneficial interest in that entity. These 'Owners' are specifically listed in Appendix A of the Area Development Agreement. This definition is crucial for identifying who is ultimately responsible for the franchise's obligations.

This definition has significant implications for prospective franchisees. If a franchisee is an entity, Beauty Bungalows requires a clear understanding of who the 'Owners' are, as these individuals may be subject to certain obligations and liabilities under the franchise agreement. For example, these individuals may be required to sign a personal guarantee, as detailed in Appendix B of the Area Development Agreement, ensuring they are personally liable for the franchisee's performance.

Furthermore, the 'Owners' may also be subject to confidentiality and restrictive covenant agreements, as outlined in Exhibit G of the FDD. These agreements could restrict their activities even after they are no longer involved with the Beauty Bungalows franchise. Therefore, it is essential for prospective franchisees operating as entities to carefully review Appendix A and understand the full implications of being listed as an 'Owner'.