Does the Beauty Bungalows Franchise Agreement specify any conditions related to the 'Protected Territory Acknowledgement' for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule 1 to Appendix A of the Franchise Agreement
Franchisee Specific Terms (to be completed after Premises Selection and acceptance)
1. Premises. Franchisee's Business will be located at:
- Protected Territory. Franchisor will not own, operate, or franchise a operation of another Franchise within the area described as: fixed franchise for the [ ] 2-mile radius around location; [ ] 1-mile radius around location; or [ ] 0.5-mile radius around location Fully executed this BEAUTY BUNGALOWS FRANCHISING, LLC
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Schedule 1 to Appendix A of the Franchise Agreement contains the Protected Territory Acknowledgment. This schedule is completed after the selection and acceptance of the premises for the Beauty Bungalows franchise.
The document specifies that the franchisee's business will be located at a designated premises. The franchisor agrees not to own, operate, or franchise another Beauty Bungalows location within a defined area, which can be a [ ] 2-mile radius, [ ] 1-mile radius, or [ ] 0.5-mile radius around the franchisee's location. The specific radius is to be indicated in the agreement.
This acknowledgment outlines the boundaries of the franchisee's protected territory, ensuring a degree of exclusivity within the specified area. This is a fairly standard practice in franchising, intended to provide franchisees with a geographic advantage. However, it is important to note the specific radius selected, as this will directly impact the extent of the protected territory.