What is the exception to Beauty Bungalows exercising its remedies if operating assets are completely destroyed?
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 the operating assets of a franchised business are completely destroyed or cannot be repaired due to an event beyond the franchisee's control, Beauty Bungalows will generally not exercise its remedies under Section 6.2 of the agreement.
However, this exception is conditional. To avoid Beauty Bungalows exercising its remedies, the franchisee must meet two requirements. First, within 30 days after the destruction event, the franchisee must make arrangements with Beauty Bungalows or its designated supplier to obtain new operating assets for the business. Second, the franchisee must reopen and operate the Beauty Bungalows franchise in the protected territory within 90 days of the destruction event.
This clause provides some protection for franchisees facing unforeseen disasters, giving them time to recover and rebuild their business. However, franchisees need to act quickly to secure new assets and resume operations to maintain their rights under the franchise agreement. Failing to meet these deadlines could result in Beauty Bungalows exercising its rights and remedies, potentially leading to termination of the franchise agreement.