If the Beauty Bungalows Development Agreement is terminated, are franchisees relieved of their obligations, debts, or liabilities?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement for any other reason whatsoever, we will retain the Development Fee and you will not be relieved of any of your obligations, debts, or liabilities hereunder, including without limitation any debts, obligations, or liabilities which have accrued prior to such termination.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, if the Area Development Agreement is terminated for any reason, franchisees are not relieved of their obligations, debts, or liabilities. This includes any debts, obligations, or liabilities that accrued before the termination.
This means that even if the agreement ends, a franchisee is still responsible for fulfilling any financial or contractual commitments made during the term of the agreement. This could include outstanding payments for fees, services, or products, as well as any other liabilities incurred.
This provision protects Beauty Bungalows from financial losses if a Development Agreement is terminated, ensuring that franchisees remain accountable for their obligations even after the agreement is no longer in effect. Prospective franchisees should carefully consider this clause and understand the potential financial implications of terminating the agreement.