In the Beauty Bungalows Franchise Agreement, what is the definition of a 'Client'?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
1.04 "Client" means the individual receiving salon services from Franchisee's Customers (defined below).
1.06 "Confidential Information" means all methods for establishing, operating, and promoting the Business pursuant to the Franchisor's distinctive business format, plans, methods, data, processes, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, Marks and information and know-how of the Franchisor and such other information as may be further developed periodically by the Franchisor.
Franchisor's Confidential Information includes lists of, and information regarding, actual and prospective customers (including Customers) of any Beauty Bungalows Studio.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, a 'Client' is defined as the individual receiving salon services from the franchisee's customers. This definition is important for franchisees to understand, as it clarifies the distinction between the franchisee's direct customers (the salon service providers renting space) and the end consumers who receive services from those providers.
This distinction is relevant because Beauty Bungalows may have different marketing strategies, data collection practices, or support systems tailored to each group. For example, Beauty Bungalows might provide resources to help franchisees attract salon service providers (their customers) while also offering guidance on how those providers can build relationships with their own clients.
Understanding the definition of 'Client' also helps clarify who is included in the 'Trade Secret' definition, which includes lists of and information regarding actual and prospective customers (including Customers) of any Beauty Bungalows. This means that the end consumers of the salon services are considered part of Beauty Bungalows's trade secrets, and the franchisee must protect this information accordingly.