Are Beauty Bungalows franchisees required to participate in Multi-Area Marketing Programs?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
or symbols, now or in the future associated with Franchisor, the System or the franchised Business, whether or not they are registered, including, but not limited to, "Beauty Bungalows."
1.17 "Multi-Area Marketing Program(s)" or "MAM Program(s)" means regional, national, or international marketing, advertising, or promotional program(s) performed in conjunction with other franchisees or the Franchisor, designed to increase business, such as marketing to multi-area customers, customer incentive programs, Internet, social media, shows, events, yellow pages, directories, affinity marketing, vendor programs, and co-branding programs. Subject to the expenditure limit set forth in Section 9.03, Franchisee must participate, at Franchisee's sole cost and expense, in any Multi-Area Marketing Programs required by Franchisor.
1.18 "Brand Fund" means the separate bank account used by Franchisor for the purposes specified in this Franchise Agreement. The Marketing Fund is not a trust or escrow account and is managed by Franchisor in its sole discretion. Franchisee must make a monthly contribution to the Brand Fund as set forth in Section 9.04.
1.19 "Premises" means the one Franchise within the Protected Territory and as described in Appendix A at which Franchisee may operate the franchised Business using the System.
1.20 "Protected Territory" means the territory described in Schedule 1 to Appendix A to this Agreement, subject to any reservations or exceptions contained in this Agreement.
1.21 "Site Selection Area" means the area in which you will have the non-exclusive right to search for a Premises to locate your Beauty Bungalows Franchise. Your Site Selection Area is set forth in Appendix A to this Agreement.
1.22 "System" means, collectively, Franchisor's valuable know-how, information, trade secrets, methods, Manuals, standards, designs, methods of trademark usage, copyrightable works, rental space sources and specifications, software, confidential electronic and other communications, methods of Internet usage, marketing programs, and research and development connected with the operation and promotion of the franchised Business, as modified by Franchisor at any time.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, franchisees are required to participate in Multi-Area Marketing Programs (MAM Programs) if mandated by the franchisor. These programs encompass regional, national, or international marketing efforts designed to boost business through various channels, such as multi-area customer targeting, incentive programs, internet and social media campaigns, shows, events, directories, and co-branding initiatives. Franchisees bear the costs associated with these programs.
The FDD also states that if Beauty Bungalows directly collects payments from franchisees for a MAM Program, it will use these funds at its discretion for the program, including to cover administrative costs. The franchisee acknowledges that participation in a MAM Program may not guarantee direct benefits or be proportionate to their expenses. Beauty Bungalows franchising has no fiduciary duty regarding these programs.
However, the combined expenses for MAM Programs and the monthly Brand Fund contribution are capped at two percent (2%) of the franchisee's Gross Revenue in a given month. Beauty Bungalows will not use MAM Programs primarily to solicit franchise sales but reserves the right to pursue any business opportunities arising from these programs. Franchisees must also adhere to maximum pricing guidelines, where legally permissible, in connection with any MAM Programs. All aspects of the MAM Programs are considered Trade Secrets of Beauty Bungalows.