Does the Beauty Bungalows Franchise Agreement outline any exceptions to the definition of 'Competitive Business'?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, while the document defines what constitutes a 'Competitive Business,' it does not explicitly list any exceptions to this definition. The document defines a 'Competitive Business' as any enterprise that develops, operates, constructs, manages, provides, rents, or leases studios, suites, offices, or rooms to individuals, businesses, or groups offering spa, barbering, beauty, cosmetology, wellness, personal care, massage, nail care, skin care, teeth-whitening, skin tanning, hair loss treatments, hair treatment, and other similar personal services.

However, the franchise agreement does address stock ownership, stating that the non-compete clause does not prevent an active officer or a family member of the franchisee from owning up to 5% of the stock of any company subject to the reporting requirements of Sections 11 or Subsection 14(d) of the Securities and Exchange Act of 1934. This suggests a limited exception related to minor stock ownership in potentially competitive businesses.

Prospective franchisees should seek clarification from Beauty Bungalows regarding whether other specific activities or business interests might be considered exceptions to the 'Competitive Business' definition. Understanding the scope of the non-compete obligations is crucial for franchisees to avoid potential conflicts of interest and ensure compliance with the franchise agreement.