Can I own or have an interest in a business that provides spa services while operating a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise approved in writing by the Company, I shall not, while in my position with the Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or limited liability company, own, maintain, engage in, be employed by, or have any interest in any other business which: develops, operates, constructs, manages, provides, rents or leases studios, suites, offices or rooms to individuals, businesses or groups that provide spa services, barbering, beauty services, cosmetology services, wellness services, personal care services, massage services, nail care services, skin care services, teeth-whitening services, skin tanning services, hair loss treatments services and hair treatment services and other similar personal services. (collectively, a "Competing Business").
I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, if you are in a position with the franchisee, you are generally prohibited from owning or having an interest in a competing business that offers spa services or similar personal services. Specifically, while in your position with the Beauty Bungalows franchisee, you cannot own, maintain, engage in, be employed by, or have any interest in any other business that develops, operates, constructs, manages, provides, rents, or leases studios, suites, offices, or rooms to individuals, businesses, or groups that provide spa services, barbering, beauty services, cosmetology services, wellness services, personal care services, massage services, nail care services, skin care services, teeth-whitening services, skin tanning services, hair loss treatments services and hair treatment services and other similar personal services, unless otherwise approved in writing by Beauty Bungalows.
This restriction extends to any involvement, whether direct or indirect, with a competing business. You are also prohibited from diverting business away from the Beauty Bungalows franchise or soliciting its customers or employees for any competitive purpose.
This restriction is outlined in the sample Confidentiality and Restrictive Covenant Agreement included in the FDD, which trained employees, officers, directors, general partners, members, Operating Principal(s), Key Manager(s), and any other management personnel of the franchisee must adhere to. This agreement ensures that confidential information is protected and that individuals associated with the Beauty Bungalows franchise do not engage in activities that could harm the business.
It is important to note that this restriction applies while you are in a position with the Beauty Bungalows franchisee and may also extend for a period after your involvement ends, as detailed in the post-term restrictive covenant. The specifics of these restrictions, including duration and geographic scope, are further detailed in the agreement.