Does the Beauty Bungalows Franchise Agreement prohibit a Beauty Bungalows franchisee from assigning telephone numbers without the 'Collateral Assignment'?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and acknowledges that as between Franchisor and Franchisee, upon termination or expiration of the Franchise Agreement, Franchisor shall have the sole right to and interest in the Numbers, Addresses, and Listings, and Franchisee appoints Franchisor as Franchisee's true and lawful attorney-infact to direct the Provider Companies to assign same to Franchisor, and execute such documents and take such actions as may be necessary to effectuate the assignment. Upon such event, Franchisee shall immediately notify the Provider Companies to assign the Numbers, Addresses, and Listings to Franchisor. If Franchisee fails to promptly direct the Provider Companies to assign the Numbers, Addresses and Listings to Franchisor, Franchisor shall direct the Provider Companies to effectuate the assignment contemplated hereunder to Franchisor. The parties agree that the Provider Companies may accept Franchisor's written direction, the Franchise Agreement, or this Assignment as conclusive proof of Franchisor's exclusive rights in and to the Numbers, Addresses, and Listings upon such termination or expiration and that such assignment shall be made automatically and effective immediately upon Provider Companies' receipt of such notice from Franchisor or Franchisee. The parties further agree that if the Provider Companies require that the parties execute the Provider Companies' assignment forms or other documentation at the time of termination or expiration of the Franchise Agreement, Franchisor's execution of such forms or documentation on behalf of Franchisee shall effectuate Franchisee's consent and agreement to the assignment. The parties agree that at any time after the date hereof they will perform such acts and execute and deliver such documents as may be necessary to assist in or accomplish the assignment described herein upon termination or expiration of the Franchise Agreement.
[SIGNATURE PAGE FOLLOWS]
[FRANCHISEE] BEAUTY BUNGALOWS FRANCHISING, LLC
FRANCHISOR:
Date:
APPENDIX D TO FRANCHISE AGREEMENT
STATEMENT OF OWNERSHIP
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, the Franchise Agreement addresses the assignment of telephone numbers, addresses, and listings upon termination or expiration of the agreement. It states that Beauty Bungalows, as the Franchisor, has the sole right to and interest in these Numbers, Addresses, and Listings upon termination or expiration of the Franchise Agreement.
The agreement requires the franchisee to appoint Beauty Bungalows as their attorney-in-fact to direct the Provider Companies to assign the Numbers, Addresses, and Listings to Beauty Bungalows. The franchisee is obligated to notify the Provider Companies immediately to make this assignment. If the franchisee fails to do so, Beauty Bungalows is authorized to direct the Provider Companies to effectuate the assignment. The agreement also indicates that Appendix C is related to the Collateral Assignment of Telephone Numbers, Addresses, and Listings.
In practical terms, this means that when a Beauty Bungalows franchise agreement ends, the franchisee must transfer all phone numbers, addresses, and listings associated with the business to Beauty Bungalows. This ensures that Beauty Bungalows maintains control over its brand identity and customer communication channels. The franchisee's failure to comply can result in Beauty Bungalows directly intervening to secure these assets. This requirement is typical in franchising to protect the brand and ensure a smooth transition when a franchise agreement concludes.