May a Beauty Bungalows franchisee be responsible for a Site Selection Assistance Fee?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
locating a site for the Franchise and negotiating a lease for the property. Upon request, Franchisor will provide assistance to Franchisee in analyzing a site and in reviewing a lease for your Franchise. If a representative of Franchisor travels to your market or location to aid in site selection or market due diligence, Franchisee will be responsible for the representative's travel, meals and hotel costs. Franchisee may also be responsible for the Site Selection Assistance Fee. Upon request, Franchisor will analyze a site for the Franchise by examining population density, salon density, traffic patterns, and proximity of the proposed franchise to any other Beauty Bungalows, or any other reasonable criteria, as set forth in Section 10.02. Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease. Franchisee must secure a Premises that we have approved by signing a lease or purchase agreement within ninety (90) days of the date of this Agreement. We may extend the deadline for acquisition of a Premises by 90 days in our sole discretion, and we may require you to pay an extension fee equal to two thousand five hundred dollars ($2,500.00), and execute a general release as a condition of us agreeing to grant such extension. Franchisor will approve or disapprove your site within thirty (30) days after receiving notice of the proposed Franchise location from Franchisee. If we have accepted a Premises
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, a franchisee may be responsible for a Site Selection Assistance Fee. In addition to this fee, if a Beauty Bungalows representative travels to the franchisee's market or location to assist with site selection or market due diligence, the franchisee is responsible for covering the representative's travel, meals, and hotel costs.
Beauty Bungalows will analyze a potential site by considering factors such as population density, salon density, traffic patterns, and the proximity to other Beauty Bungalows locations. However, the FDD states that Beauty Bungalows's assistance in site selection does not constitute a representation or warranty regarding the property or the lease.
Furthermore, the franchisee must secure an approved premises by signing a lease or purchase agreement within 90 days of the franchise agreement date. Beauty Bungalows may extend this deadline by an additional 90 days, but may require the franchisee to pay an extension fee of $2,500 and execute a general release as a condition of granting the extension. Beauty Bungalows will approve or disapprove the franchisee's proposed site within 30 days of receiving notice of the location from the franchisee. If a franchisee is unable or unwilling to acquire an accepted premises within 90 days of the agreement's effective date, Beauty Bungalows has the right to terminate the agreement.