What is the dependency between opening a Beauty Bungalows franchise and the Development Schedule?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens
3. Development Schedule and Deadlines
3.1. Development Schedule.
You must enter into Franchise Agreements, and open and operate Franchised Businesses in accordance with the deadlines set forth in the Development Schedule. By each "Opening Deadline" specified in the Development Schedule, you must have the specified number of Businesses open and operating. Prior to opening additional Franchised Businesses in your Development Area, you must: (i) possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Franchised Business in our reasonable judgment; (ii) be in full compliance with all brand requirements at any existing Franchised Businesses you operate;
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, franchisees who sign an Area Development Agreement must adhere to a Development Schedule. The Development Schedule outlines specific deadlines for signing Franchise Agreements and opening Beauty Bungalows franchised businesses.
The FDD states that by each "Opening Deadline" listed in the Development Schedule, the franchisee must have the specified number of businesses open and operating. Prior to opening additional franchised businesses in their Development Area, franchisees must demonstrate sufficient financial and organizational capacity to manage each new location. They must also be in full compliance with all brand requirements at any existing Beauty Bungalows locations they operate, as well as compliance with any Franchise Agreement or other agreements with Beauty Bungalows.
The Area Development Agreement remains in effect until the last Opening Deadline date listed on the Development Schedule, unless the agreement is terminated earlier according to its terms. Therefore, a franchisee's ability to maintain the Area Development Agreement and develop multiple Beauty Bungalows locations is directly tied to meeting the milestones set forth in the Development Schedule.