If Beauty Bungalows establishes a Franchise Advisory Board, can they change or dissolve it?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently, we have not formed any council of Beauty Bungalows franchisees, but we may do so in the future. We have the right to form, change, dissolve, or merge franchisee advisory council(s). When established, the Beauty Bungalows Franchise Advisory Board ("BBFAB") will provide us with general input but will not have decision making authority or the ability to obligate us to any particular course of action outside of our obligations set forth in the Franchise Agreement. Council members may be selected for any characteristics, such as region and experience. We will give due consideration to all input from the council, but we retain the ultimate decision-making authority and responsibility for all matters. If we submit a matter for approval by the BBFAB and that matter is approved by a majority vote of the BBFAB, that approval will be fully binding on you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, while they currently do not have a franchisee advisory council, they reserve the right to form one in the future. Beauty Bungalows retains the authority to change or dissolve any franchisee advisory councils they establish.
If a Beauty Bungalows Franchise Advisory Board (BBFAB) is established, it will provide general input to the franchisor, but will not have decision-making authority. The franchisor will give due consideration to the council's input, but retains ultimate decision-making authority.
However, if Beauty Bungalows submits a matter for approval by the BBFAB and it is approved by a majority vote, that approval will be fully binding on the franchisee. This means that while the advisory board's input is generally non-binding, there are circumstances where their decisions can directly affect a franchisee's obligations.