What information must be included in the executed contract of transfer sent to Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ted to you under this Agreement are personal to you and neither this Agreement, nor any of the rights granted to you hereunder nor any controlling equity interest in you may be voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, assigned or otherwise transferred, given away, or encumbered by you without our prior written approval, which we may grant or withhold for any or no reason.
7.2. Our Right of First Refusal.
- i. If you receive, and desire to accept, from a third party a bona fide offer to transfer any of your rights in this Agreement, you shall promptly notify us in writing and send us an executed copy of the contract of transfer. We shall have the right and option, exercisable within thirty (30) days after actual receipt of such notification or of the executed contract of transfer which shall describe the terms of the offer, to send written notice to you that we intend to purchase your interest on the same terms and conditions offered by the third party. We may charge a fee to transfer your rights under this Agreement (the "Transfer Fee") equal to $5,000 multiplied by the number of Franchised Businesses you intend to transfer, plus any third-party broker or agency fees that are incurred by us as a result of the transfer.
- ii. Closing on the purchase must occur within sixty (60) days from the date of notice by us to you of our election to purchase. If we elect not to accept the offer within the thirty (30) day period, you shall have a period not to exceed sixty (60) days to complete the transfer subject to our approval of the third-party transferee of your rights, which may be withheld in our sole discretion. Any material change in the terms of any offer before closing shall constitute a new offer subject to the same rights of first refusal by us as in the case of an initial offer.
- iii. Our failure or refusal to exercise the option afforded by this Section 7 shall not constitute a waiver of any other provision of this Agreement.
iv. If the offer from a third-party provides for payment of consideration other than cash or involves certain intangible benefits, we may elect to purchase the interes
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, if a franchisee receives a legitimate offer from a third party to transfer any rights within their Area Development Agreement and wishes to accept it, they must promptly inform Beauty Bungalows in writing. This notification must include an executed copy of the contract of transfer. The contract should detail all the terms of the offer made by the third party.
Beauty Bungalows then has the option to purchase the franchisee's interest under the same terms and conditions offered by the third party. This right must be exercised within thirty days of receiving the notification and the executed contract. If Beauty Bungalows decides to exercise its right of first refusal, the closing on the purchase must occur within sixty days from the date Beauty Bungalows notifies the franchisee of its intent to purchase.
If Beauty Bungalows chooses not to accept the offer within the 30-day period, the franchisee has up to sixty days to complete the transfer to the third party. However, this transfer is contingent upon Beauty Bungalows' approval of the third-party transferee, which can be withheld at Beauty Bungalows' discretion. Any significant changes to the terms of the offer before closing are considered a new offer, which would again be subject to Beauty Bungalows' right of first refusal.