If Beauty Bungalows extends the deadline for site acquisition, what must the franchisee execute?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
y Bungalows or any other reasonable criteria. You must secure a Site that we have approved by signing a lease or purchase agreement within ninety (90) days of the date of this Agreement. We may extend the deadline for acquisition of a Site by 90 days in our sole discretion, and we may require you to pay a $2,500 extension fee and execute a general release as a con
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, franchisees are initially given 90 days from the date of the Franchise Agreement to secure a site, either by signing a lease or purchase agreement. Beauty Bungalows may, at its sole discretion, extend this deadline by an additional 90 days.
However, this extension is not automatic. As a condition for Beauty Bungalows agreeing to grant the extension, the franchisee may be required to pay a $2,500 extension fee.
In addition to the fee, the franchisee must execute a general release. This release likely protects Beauty Bungalows from any claims or liabilities related to the site selection process or the extension itself. Prospective franchisees should carefully review the terms of the general release with a legal professional to understand its implications fully before signing.