What happens if a levy or execution is made on the Beauty Bungalows license?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, franchisees are expected to manage their business finances responsibly and avoid actions that could jeopardize the business's financial standing. Specifically, Beauty Bungalows franchisees must promptly pay all taxes, fees, debts, expenses, and assessments associated with their franchised business, including payroll taxes.

The Franchise Agreement explicitly states that a Beauty Bungalows franchisee will not permit a tax sale, seizure, levy, execution, bankruptcy, assignment of assets for or by creditors, or similar action to occur. This clause indicates that such actions are considered a breach of the agreement.

While the FDD excerpt does not explicitly detail the consequences of such an event, it strongly implies that allowing such financial distress to occur would be a violation of the Franchise Agreement. This could potentially lead to penalties, up to and including termination of the franchise agreement. A prospective Beauty Bungalows franchisee should seek clarification from the franchisor regarding the specific repercussions of such financial events.