Is a Beauty Bungalows franchisee solely responsible for locating a site for the Franchise and negotiating a lease?
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 for you Business and you are unable or unwilling to acquire such Premises or an alternative Premises that we accept within 90 days of the Effective Date of this Agreement, we may terminate this Agreement. Franchisee agrees that the location of the Franchise isa factor in the potential for success of the Business and Franchisor may reject any location in its sole discretion, but consent will not be unreasonably withheld.
- 8.03 Equipment, Inventory, Advertising and Services.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the franchisee is responsible for selecting the location for their Beauty Bungalows franchise. However, Beauty Bungalows does offer assistance in site selection. The franchisee and Beauty Bungalows must mutually agree on the premises.
The FDD states that Beauty Bungalows will analyze a potential site based on factors such as population density, salon density, traffic patterns, and proximity to other Beauty Bungalows locations. Beauty Bungalows has the right to approve or disapprove the franchisee's site selection within 30 days of receiving notice of the proposed location. The franchisee must secure a lease or purchase agreement for the approved premises within 90 days of the franchise agreement date. Beauty Bungalows may extend this deadline by 90 days, but may require a $2,500 extension fee and a general release from the franchisee.
While Beauty Bungalows offers site analysis, the final decision on the location rests with Beauty Bungalows, and they may reject any location. The franchisee is responsible for the costs associated with Beauty Bungalows representatives traveling to the franchisee's market to aid in site selection. The assistance Beauty Bungalows provides does not constitute a representation or warranty regarding the property or lease.
The franchisee operates the Beauty Bungalows at a location that the franchisee selects and Beauty Bungalows accepts. Once a location is accepted, Beauty Bungalows will designate a protected territory within the site selection area. The franchisee cannot relocate the premises without Beauty Bungalows' prior written approval. Beauty Bungalows also retains the right to enter the premises to protect the Beauty Bungalows system and marks, cure defaults, or remove trade dress upon termination of the agreement.