Does the Beauty Bungalows franchise agreement specify the process for requesting written approval to engage in a conflicting business?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise approved in writing by the Company, I shall not, while in my position with the Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or limited liability company, own, maintain, engage in, be employed by, or have any interest in any other business which: develops, operates, constructs, manages, provides, rents or leases studios, suites, offices or rooms to individuals, businesses or groups that provide spa services, barbering, beauty services, cosmetology services, wellness services, personal care services, massage services, nail care services, skin care services, teeth-whitening services, skin tanning services, hair loss treatments services and hair treatment services and other similar personal services. (collectively, a "Competing Business").
I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, if a franchisee employee, officer, director, general partner, member, or key manager wants to own, maintain, engage in, be employed by, or have any interest in any other business that develops, operates, constructs, manages, provides, rents or leases studios, suites, offices or rooms to individuals, businesses or groups that provide spa services, barbering, beauty services, cosmetology services, wellness services, personal care services, massage services, nail care services, skin care services, teeth-whitening services, skin tanning services, hair loss treatments services and hair treatment services and other similar personal services (collectively, a "Competing Business"), they must obtain written approval from Beauty Bungalows.
The agreement states that unless Beauty Bungalows provides written approval, individuals in the aforementioned roles are prohibited from engaging in a Competing Business for themselves or with others. This restriction applies while they are in their position with the franchisee. They are also prohibited from taking any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose.
While the FDD specifies that written approval is required to engage in a conflicting business, it does not detail the exact process for requesting this approval. A prospective franchisee should ask Beauty Bungalows about the specific steps and criteria involved in seeking written approval to engage in a conflicting business to fully understand the requirements and potential limitations.