Does the Beauty Bungalows disclosure document include a Nondisclosure and Noncompetition Agreement exhibit?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | State Effective Dates | |
| Receipts | ||
| Date Received: | ||
| Signature: | ||
| Print Name: |
EXHIBIT G
SAMPLE CONFIDENTIALITY AND RESTRICTIVE COVENANT AGREEMENT
(for trained employees, officers, directors, general partners, members, Operating Principal(s), Key Manager(s), and any other management personnel of Franchisee)
In consideration of my being a [INSERT TITLE/ROLE WITH FRANCHISEE] of [FRANCHISEE ENTITY] (the "Franchisee"), and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, I (the undersigned) hereby acknowledge and agree that Franchisee has acquired the right from Beauty Bungalows Franchising, LLC (the "Company") to: (i) establish and operate a Beauty Bungalows franchised business (the "Franchised Business"); and (ii) use in the operation of the Franchised Business the Company's trade names, trademarks and service marks (collectively, the "Marks") and the Company's unique and distinctive format and system relating to the establishment and operation of a Franchised Business (the "System"), as they may be changed, improved and further developed from time to time in the Company's sole discretion, only at the following authorized and approved location: [LOCATION ADDRESS] (the "Premises").
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7.1 Post-Term Restrictive Covenant for Controlling Person of Franchised Business or Manager/Officers/Directors of Franchisee.
In the event I am a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a personal guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of one year after the expiration or termination of my employment with Franchisee for any reason: (i) at or within a 10-mile radius of the Premises; or (ii) within a 10-mile radius of any other Beauty Bungalows business that exists at the time my employment with Franchisee ceases through the date of my involvement with the Competing Business.
I also agree that I will not be involved in the franchising or licensing of any Competing Business at any l
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Exhibit G is a Sample Confidentiality and Restrictive Covenant Agreement. This agreement is intended for trained employees, officers, directors, general partners, members, Operating Principal(s), Key Manager(s), and any other management personnel of the franchisee.
The agreement states that in consideration of being employed by the franchisee, the individual acknowledges that the franchisee has the right from Beauty Bungalows Franchising, LLC to establish and operate a Beauty Bungalows franchised business, use the company's trade names, trademarks, and service marks, and utilize the company's unique system at an approved location.
Additionally, the FDD includes a post-term restrictive covenant for the controlling person of the franchised business or managers/officers/directors of the franchisee. If an individual is a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a personal guaranty agreeing to be bound by the terms of the Franchise Agreement, then that individual agrees not to be involved in a Competing Business of any kind for a period of one year after the expiration or termination of their employment with Franchisee for any reason within a 10-mile radius of the Premises or within a 10-mile radius of any other Beauty Bungalows business that exists at the time their employment with Franchisee ceases through the date of their involvement with the Competing Business. They also agree not to be involved in the franchising or licensing of any Competing Business.