What must a Beauty Bungalows franchisee do after terminating the agreement due to a franchisor violation?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) cancel or assign within five (5) days all registrations relating to its use of any of the Marks, in Franchisor's sole and absolute discretion.
Franchisee must notify the telephone, Internet, email, electronic network, directory, and listing entities of the termination or expiration of the Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and must authorize their transfer to the Franchisor or any new franchisee as may be directed by the Franchisor.
The Franchisee acknowledges as between the Franchisor and the Franchisee, the Franchisor has the sole rights to, and interest in, all numbers, addresses, domain names, locators, directories and listings used by Franchisee to promote the System.
The Franchisee hereby irrevocably appoints the Franchisor, with full power of substitution, as its true and lawful attorney- in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or prudent to accomplish the foregoing.
Such appointment is evidenced by Appendix C;
(d) cease doing business under any of the Marks, cancel any assumed name registration that includes any of the Marks, assign all domain names and Internet directory listings that contain the Marks to Franchisor, and refrain from identifying itself as a Beauty Bungalows franchisee;
(e) allow Franchisor or representatives access to the Business and the computer systems to verify and secure Franchisee's compliance with the obligations under this Agreement;
(f) allow Franchisor to make a final inspection and audit of your computer system, books, records and accounts;
(g) allow Franchisor the option, exercisable by Franchisor by written notice to Franchisee within thirty (30) days after expiration or earlier termination of this Agreement, to purchase from Franchisee any or all of the furnishings, equipment, signs, fixtures, supplies, materials and other assets related to the operation of the Business, at fair market value.
Franchisor shall purchase assets only and shall assume no liabilities, unless otherwise agreed in writing by the parties.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, if a franchisee terminates the agreement due to a franchisor violation, they must take several actions. The franchisee is required to cancel or assign all registrations relating to the use of any of the Beauty Bungalows' marks within five days, with Beauty Bungalows having sole discretion over these actions. The franchisee must also inform all relevant entities, such as telephone, internet, email, and directory services, about the termination of their right to use any numbers, addresses, domain names, or listings associated with Beauty Bungalows' marks. They must then authorize the transfer of these assets to Beauty Bungalows or a new franchisee as directed by Beauty Bungalows.
Additionally, the franchisee must cease doing business under any of the Beauty Bungalows' marks, cancel any assumed name registrations that include these marks, and assign all domain names and internet directory listings containing the marks to Beauty Bungalows. They must also refrain from identifying themselves as a Beauty Bungalows franchisee. The franchisee must allow Beauty Bungalows or its representatives access to the business and computer systems to verify compliance with these obligations.
Beauty Bungalows also has the option to conduct a final inspection and audit of the franchisee's computer system, books, records, and accounts. Furthermore, Beauty Bungalows has the option to purchase any or all of the furnishings, equipment, signs, fixtures, supplies, materials, and other assets related to the operation of the business at fair market value, exercisable within thirty days after the termination of the agreement. Beauty Bungalows will only purchase assets and will not assume any liabilities unless otherwise agreed in writing.