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What are the options for the protected territory radius around a Beauty Bungalows location?

Q: What are the options for the protected territory radius around a Beauty Bungalows location?

*Schedule 1 to Appendix A of the Franchise Agreement* *Franchisee Specific Terms (to be completed after Premises Selection and acceptance)* **1. Premises.** Franchisee's Business will be located at: 2. Protected Territory. Franchisor will not own, operate, or franchise a operation of another Franchise within the area described as: fixed franchise for the [ ] 2-mile radius around location; [ ] 1-mile radius around location; or [ ] 0.5-mile radius around location Fully executed this BEAUTY BUNGALOWS FRANCHISING, LLC Source: Item 22 — CONTRACTS (FDD pages 47–48)

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

Schedule 1 to Appendix A of the Franchise Agreement

Franchisee Specific Terms (to be completed after Premises Selection and acceptance)

1. Premises. Franchisee's Business will be located at:

Protected Territory. Franchisor will not own, operate, or franchise a operation of another Franchise within the area described as: fixed franchise for the [ ] 2-mile radius around location; [ ] 1-mile radius around location; or [ ] 0.5-mile radius around location Fully executed this BEAUTY BUNGALOWS FRANCHISING, LLC

Source: Item 22 — CONTRACTS (FDD pages 47–48)

What This Means (2025 FDD)

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the franchise agreement offers franchisees a protected territory, the size of which is determined after the selection and acceptance of the premises. The protected territory is described in Schedule 1 to Appendix A of the franchise agreement.

The document specifies three options for the radius of the protected territory: a 2-mile radius, a 1-mile radius, or a 0.5-mile radius around the Beauty Bungalows location. This means that during the term of the agreement, Beauty Bungalows will not operate or franchise another location within the chosen radius, offering the franchisee a degree of exclusivity in their immediate area.

The selection of the protected territory radius is a crucial factor for potential franchisees to consider. A larger radius provides greater exclusivity but may also limit the franchisee's ability to expand or open additional locations in the future. Conversely, a smaller radius may allow for more flexibility in expansion but increases the risk of competition from other Beauty Bungalows franchises. Prospective franchisees should carefully evaluate the demographics, market conditions, and competitive landscape of their chosen location to determine the most appropriate protected territory radius for their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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