How long does the estate of a deceased or disabled Beauty Bungalows franchisee have to assign the franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| H | “Cause” defined - non- curable defaults | Section 13.02(b) | Non-curable defaults include misrepresentation by you, failure to complete initial training, bankruptcy, insolvency, or appointment of receiver, abandonment, trademark misuses, unauthorized disclosure, unapproved transfers, or repeated noncompliance. (Termination upon bankruptcy may not be enforceable under U.S. Bankruptcy Law.) |
|---|---|---|---|
| I | Franchisee’s obligations on termination/nonrenewal | Sections 3.07, 13.03, 13.04 | Obligations include complete de- identification, non-competition, return of confidential or critical business information, payment of amounts due, and, upon Franchisor’s election, cooperation regarding assignment of lease. |
| J | Assignment of contract by franchisor | Section 14 | No restriction on our right to assign. |
| K | “Transfer” by franchisee - defined | Sections 1.23, 14.03 | Includes transfer of contract or assets or ownership change. |
| L | Franchisor approval of transfer by franchisee | Sections 14.04-14.08 | We have the right to approve all transfers but will not unreasonably withhold approval. |
| M | Conditions for franchisor approval of transfer | Section 14.04 | Franchise must be open for business to the general public at the Premises, New Franchisee qualifies, Transfer Fee paid, purchase agreement approved, training arranged, general release signed by you, and current agreement signed by new Franchisee. Any brokers’ fees or commissions that arise because of the transfer must be paid by the Franchisee. |
| N | Franchisor’s right of first refusal to acquire franchisee’s Business. | Section 14.09 | We can match any offer for your Business. |
| O | Franchisor’s option to purchase franchisee’s Business | Section 14.09 | We may purchase the Business pursuant to our Right of First Refusal to match any offer for your Business. |
| P | Death or disability of franchisee | Section 14.08 | Franchise must be assigned by estate to approved transferee within 120 days. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, their estate has 120 days to assign the franchise to an approved transferee. This requirement ensures that the Beauty Bungalows business continues to operate under an approved owner, maintaining brand standards and operational consistency.
For a prospective Beauty Bungalows franchisee, this 120-day window is a critical consideration for estate planning. Franchisees should ensure their estate plans account for this requirement, including identifying potential transferees who meet Beauty Bungalows's approval criteria. This preparation can help avoid a forced sale or termination of the franchise agreement, which could result in significant financial losses for the franchisee's heirs.
It's important to note that the transferee must be approved by Beauty Bungalows. The franchisor's approval process typically involves assessing the transferee's financial qualifications, business experience, and ability to operate the franchise according to Beauty Bungalows's standards. The estate will need to work closely with Beauty Bungalows to ensure the proposed transferee meets all requirements within the 120-day timeframe. Franchisees should familiarize themselves with the transfer requirements outlined in Sections 14.04-14.08 of the franchise agreement to facilitate a smooth transition in the event of death or disability.