Can a Beauty Bungalows Franchisee transfer the agreement if they are in default of any obligations?

Based on the 2025 Beauty Bungalows Franchise Disclosure Document, the document does not explicitly state whether a franchisee can transfer the agreement if they are in default of any obligations. However, the FDD does define what a transfer means in the agreement.

According to the FDD, a "Transfer" means to voluntarily or involuntarily, directly or indirectly, transfer, assign, sell, convey, dispose of, gift, pledge, hypothecate, mortgage, or encumber any rights, obligations, interests, ownership, or Control of this Agreement, Franchisee, the Franchise, the Business, or the Assets, or any other transaction that would, alone or together with other previous, simultaneous, or proposed Transfer, have the effect of transferring a Controlling Interest in or Control of Franchisee, this Agreement, or substantially all of the Assets. Except, however, a Transfer does not include the encumbering of assets in the ordinary course of business to secure financing in order to perform obligations under this Agreement or to operate the Franchise.

Because the FDD does not specify whether a transfer is allowed if the franchisee is in default of their obligations, it is important that a prospective franchisee ask Beauty Bungalows directly about their policy on this matter.