Does the Beauty Bungalows Franchise Agreement specify any obligations related to the 'Collateral Assignment of Telephone Numbers, Addresses, and Listings' for a Beauty Bungalows franchise?
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.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Franchise Agreement includes obligations for franchisees regarding the collateral assignment of telephone numbers, addresses, and listings. Specifically, Appendix C to the Franchise Agreement covers this assignment.
Upon termination or expiration of the Beauty Bungalows Franchise Agreement, the franchisee acknowledges that Beauty Bungalows Franchising, LLC has the sole right to and interest in the telephone numbers, addresses, and listings associated with the franchise. The franchisee must appoint Beauty Bungalows as their attorney-in-fact to direct the relevant provider companies to assign these items to Beauty Bungalows. The franchisee is obligated to immediately notify these provider companies of the termination or expiration and instruct them to make the assignment to Beauty Bungalows.
If the franchisee fails to promptly direct the provider companies, Beauty Bungalows has the right to directly instruct the provider companies to effect the assignment. The provider companies are authorized to accept Beauty Bungalows' written direction, the Franchise Agreement, or the assignment itself as conclusive proof of Beauty Bungalows' exclusive rights. The assignment becomes automatically effective upon the provider companies' receipt of notice from either Beauty Bungalows or the franchisee. Furthermore, if the provider companies require specific assignment forms, Beauty Bungalows' execution of these forms on behalf of the franchisee constitutes the franchisee's consent and agreement to the assignment. Both parties agree to perform any necessary acts and execute documents to facilitate the assignment upon termination or expiration of the Franchise Agreement.