What is the dependency for Beauty Bungalows to not exercise remedies after a Destruction Event?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a franchisee experiences a "Destruction Event" that damages or destroys operating assets, Beauty Bungalows will not exercise its remedies under Section 6.2, provided the franchisee meets certain conditions.
First, within 30 days of the Destruction Event, the franchisee must make arrangements with Beauty Bungalows or its designated supplier to obtain new operating assets for the franchised business. Second, the franchisee must reopen and operate the Beauty Bungalows franchise in the protected territory within 90 days of the Destruction Event.
These conditions allow the franchisee a grace period to restore their business operations after an unforeseen event. Failure to meet either of these conditions gives Beauty Bungalows the right to exercise its remedies as outlined in Section 6.2 of the agreement. This clause ensures that franchisees are proactive in resuming operations to protect the Beauty Bungalows brand and maintain service to customers.