How long does Beauty Bungalows Franchising, LLC have to exercise its post-term option regarding the lease?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, Beauty Bungalows Franchising, LLC, or its designee, has 30 days to exercise its option to assume the franchisee's remaining lease obligations. This 30-day period begins following the date of expiration, non-renewal, or earlier termination of the Franchise Agreement. However, this option is not available if the franchisee terminates the agreement pursuant to Section 13.01.

This means that if a Beauty Bungalows franchise agreement ends (through expiration, non-renewal, or termination by Beauty Bungalows), the franchisor has a one-month window to decide whether to take over the lease for the location. This allows Beauty Bungalows to potentially continue operating a franchise at that location, even if the original franchisee is no longer involved.

If Beauty Bungalows decides to exercise this option, the franchisee is obligated to cooperate in assigning the lease to Beauty Bungalows or its designee. The franchisee is responsible for covering the expenses associated with this assignment. This clause ensures that Beauty Bungalows has the ability to maintain control over strategic locations and continue business operations seamlessly after a franchise agreement ends, provided the franchisee didn't terminate the agreement themselves.