What is the extension fee that Beauty Bungalows may require for extending the premises acquisition deadline?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
her Beauty Bungalows, or any other reasonable criteria, as set forth in Section 10.02. Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease. Franchisee must secure a Premises that we have approved by signing a lease or purchase agreement within ninety (90) days of the date of this Agreement. We may extend the deadline for acquisition of a Premises by 90 days in our
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, a franchisee must secure an approved premises within 90 days of the franchise agreement date. Beauty Bungalows, at its discretion, may grant a single 90-day extension to this deadline.
However, this extension is not automatic. Beauty Bungalows may require the franchisee to pay an extension fee of $2,500.00 as a condition of granting the extension.
Additionally, Beauty Bungalows may require the franchisee to execute a general release as a condition of the extension. This means the franchisee may have to waive certain legal claims against Beauty Bungalows to get the extra time to secure a location. This is a fairly standard practice in franchising, as it protects the franchisor from potential disputes arising from the site selection process.