What is the Franchisee assigning to the Franchisor in the Collateral Assignment of Telephone Numbers, Addresses, and Listings for Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR VALUE RECEIVED, Franchisee hereby assigns to Franchisor those certain telephone numbers, addresses, domain names, locators, directories, and listings (collectively, the "Numbers, Addresses, and Listings") associated with Franchisor's trade and service marks and used from time to time in connection with the operation of the Franchise Business at the address provided above. This Assignment is for collateral purposes only and, except as specified herein, Franchisor shall have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment, unless Franchisorshall notify the telephone, Internet, email, electronic network, directory, and listing entities with which Franchisee has dealt (all such entities are collectively referred to herein as "Provider Companies") to effectuate the assignment pursuant to the terms hereof.
Upon termination or expiration of the Franchise Agreement (without renewal or extension), Franchisor shall have the right and is hereby empowered to effectuate the Assignment of the Numbers, Addresses, and Listings and, in such event, Franchisee shall have no further right, title or interest in the Numbers, Addresses, and Listings, and shall remain liable to the Provider Companies for all past due fees owing to the Provider Companies on or before the effective date of the assignment hereunder.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the franchisee is assigning specific assets to the franchisor as part of the Collateral Assignment of Telephone Numbers, Addresses, and Listings. Specifically, the franchisee assigns to Beauty Bungalows the telephone numbers, addresses, domain names, locators, directories, and listings associated with Beauty Bungalows' trade and service marks. These are used in connection with the operation of the franchise business. This assignment serves as collateral.
Beauty Bungalows has no liability or obligation related to this assignment unless it notifies the relevant "Provider Companies" (telephone, internet, email, electronic network, directory, and listing entities) to implement the assignment according to the agreement's terms. Upon the termination or expiration of the franchise agreement, Beauty Bungalows has the right to enforce the assignment of these Numbers, Addresses, and Listings.
At the point of termination or expiration, the franchisee loses all rights, title, and interest in these Numbers, Addresses, and Listings. The franchisee remains responsible for any outstanding fees owed to the Provider Companies up to the assignment's effective date. This ensures that Beauty Bungalows can maintain a consistent brand presence and customer reach even after a franchise agreement ends, while also clarifying the franchisee's responsibilities for any outstanding debts.