What happens if I operate a conflicting business without written approval from Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise approved in writing by the Company, I shall not, while in my position with the Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or limited liability company, own, maintain, engage in, be employed by, or have any interest in any other business which: develops, operates, constructs, manages, provides, rents or leases studios, suites, offices or rooms to individuals, businesses or groups that provide spa services, barbering, beauty services, cosmetology services, wellness services, personal care services, massage services, nail care services, skin care services, teeth-whitening services, skin tanning services, hair loss treatments services and hair treatment services and other similar personal services. (collectively, a "Competing Business").
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows FDD, if you are in a position with the Franchisee, you are prohibited from owning, maintaining, engaging in, being employed by, or having any interest in any other business that develops, operates, constructs, manages, provides, rents, or leases studios, suites, offices, or rooms to individuals, businesses, or groups that provide spa services, barbering, beauty services, cosmetology services, wellness services, personal care services, massage services, nail care services, skin care services, teeth-whitening services, skin tanning services, hair loss treatments services and hair treatment services and other similar personal services, unless Beauty Bungalows gives written approval. This restriction applies while you are in your position with the franchisee.
This means that as a Beauty Bungalows franchisee, or anyone in a position with the franchisee, you cannot be involved with a competing business without written consent from Beauty Bungalows. This includes direct involvement or having any ownership or employment interest in such a business. The definition of a "Competing Business" is very broad, covering a wide range of services similar to those offered by Beauty Bungalows.
This restriction is in place to protect Beauty Bungalows's market and prevent franchisees from using the Beauty Bungalows system and confidential information to benefit a competing venture. Prospective franchisees should carefully consider this restriction, especially if they have prior experience or interests in related industries. It is important to obtain written approval from Beauty Bungalows for any outside business activities that could potentially be viewed as competitive to avoid violating the agreement.