Does the Beauty Bungalows disclosure document include a Form of General Release exhibit?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
relates to the franchise relationship.
If Beauty Bungalows Franchising, LLC does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580, and any applicable state agency (which are listed in Exhibit C).
This franchise is being offered by the following seller(s) at the principal business address and phone number
| listed below (check all that have been involved in the sales process): | ||
|---|---|---|
| □ Traci Hawkins □ Jade Blevens | ||
| 257 Wake Forest Road, Costa Mesa, CA 92626 209-996-8722 Franchise@BeautyBungalows.com | Franchise Brokers, Consultants, or Franchise Development Company Representatives (if any) □ (Name) (Address) (Phone) Issuance Date: March 10, 2024 I received a disclosure document that included the following Exhibits: | |
| A. | Financial Statements | |
| B. | Franchise Agreement & Exhibits | |
| C. | State Administrators and Agents for Service of Process | |
| D. | List of Current and Former Franchisees | |
| E. | State Specific Addenda | |
| F. | Manual Table of Contents | |
| G. | Nondisclosure and Noncompetition Agreement | |
| H. | Multi-Unit Development Agreement | |
| I. | Form of General Release | |
| J. | Electronic Funds Transfer | |
| K. | Lease Rider | |
| L. |
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Exhibit I is a Form of General Release. This exhibit is listed among other exhibits such as Financial Statements, the Franchise Agreement, and a Nondisclosure and Noncompetition Agreement.
The inclusion of a General Release form as an exhibit suggests that Beauty Bungalows may require franchisees to sign such a release under certain circumstances. This form typically involves the franchisee waiving certain rights to make claims against the franchisor. The document also includes a sample of the general release agreement as Exhibit I and states that if only the franchisee is signing the release, the language in bold and brackets referring to the Owner(s) should be deleted, but if both the Franchisee and its Owner(s) are signing the Release, the above referenced language should be left in the release, but should be taken out of the brackets and the bold type should be replaced by normal type.
Prospective Beauty Bungalows franchisees should carefully review Exhibit I and understand the implications of signing a General Release. It is advisable to seek legal counsel to fully comprehend the rights being waived and the circumstances under which the release might be required. Franchisees should also note that the general release shall not apply with respect to claims for Washington franchisees.