If a Beauty Bungalows franchisee fails to designate an acceptable location of the Franchise, what constitutes an 'acceptable location'?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
her Beauty Bungalows, or any other reasonable criteria, as set forth in Section 10.02. Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease. Franchisee must secure a Premises 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 Premises by 90 days in our sole discretion, and we may require you to pay an extension fee equal to two thousand five hundred dollars ($2,500.00), and execute a general release as a condition of us agreeing to grant such extension. Franchisor will approve or disapprove your site within thirty (30) days after receiving notice of the proposed Franchise location from Franchisee. If we have accepted a Premises for you Business and you are unable or unwilling to acquire such Premises or an alternative Premises that we accept within 90 days of the Effective Date of this Agreement, we may terminate this Agreement. Franchisee agrees that the location of the Franchise isa factor in the potential for success of the Business and Franchisor may reject any location in its sole discretion, but consent will not be unreasonably withheld.
- 8.03 Equipment, Inventory, Advertising and Services.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the franchisee is responsible for selecting a location for their Beauty Bungalows franchise. The franchisor's approval of the site is contingent upon several factors. Beauty Bungalows will analyze the site based on population density, salon density, traffic patterns, and the proximity to other Beauty Bungalows locations, as well as any other reasonable criteria outlined in Section 10.02 of the franchise agreement.
The document states that the franchisee must secure a location that Beauty Bungalows approves within 90 days of the franchise agreement date. Beauty Bungalows has the option to extend this deadline by an additional 90 days, but may require the franchisee to pay an extension fee of $2,500 and sign a general release to be granted the extension. Beauty Bungalows will then approve or disapprove the proposed site within 30 days of receiving notice of the location from the franchisee.
Ultimately, Beauty Bungalows retains the right to reject any proposed location in its sole discretion, although such consent will not be unreasonably withheld. If a franchisee is unable or unwilling to acquire a location that Beauty Bungalows accepts within 90 days of the agreement's effective date, Beauty Bungalows has the right to terminate the franchise agreement. The location of the franchise is considered a factor in the potential success of the business.