What happens if a 'Beauty Bungalows' franchisee uses the marks in an unauthorized way?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must only use the Marks in the conduct of the Business as specified in this Agreement.
Any unauthorized use of the Marks by Franchisee will constitute a breach of this Agreement and an infringement on Franchisor's rights in and to the Marks.
As between Franchisor and Franchisee, Franchisor has a prior and superior claim to the Marks, and Franchisee has no rights in the Marks other than the right to use them in the operation of the Business in compliance with this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, any unauthorized use of the Beauty Bungalows marks by a franchisee constitutes a breach of the Franchise Agreement and an infringement on the franchisor's rights to those marks. This means that franchisees must adhere strictly to the guidelines provided by Beauty Bungalows regarding the use of their trademarks, service marks, and other identifying elements. Franchisees only have the right to use the marks in the operation of their Beauty Bungalows business in compliance with the Franchise Agreement.
Beauty Bungalows franchisees are permitted to use only the trademarks specified by the franchisor, including "Beauty Bungalows," for identification, marketing, promotion, and operation of the business. Franchisees are allowed to use the term "Beauty Bungalows" on their marquee signage. If a franchisee cannot lawfully use the marks in their protected territory, they must obtain written approval from Beauty Bungalows to use alternative marks. Franchisees must also adhere to the copyright guidelines specified by Beauty Bungalows in their manual.
Beauty Bungalows retains the right to add, modify, or discontinue any marks used within the system. If changes occur, franchisees must comply with these changes within a reasonable time after receiving written notification. Generally, the franchisee bears the expense of these changes, unless Beauty Bungalows does not control the marks, in which case Beauty Bungalows will cover the costs. However, franchisees will not be required to replace or modify their storefront exterior sign within the first five years of the term, provided the original installation complied with the then-current signage specifications.
Franchisees must use the Beauty Bungalows marks as the sole identification of their business, while also identifying themselves as the independent owner in the manner prescribed by the franchisor. The marks must be displayed as directed by Beauty Bungalows. Franchisees are restricted from using the marks, or similar words or symbols, in ways not expressly authorized, such as part of any entity or business name, in conjunction with official documents without proper disclaimers, or in connection with unauthorized services or products. Beauty Bungalows retains sole rights to market and sell on the Internet using the marks, and franchisees need written consent to establish any online presence using the marks.