What is a Protected Territory for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
1.20 "Protected Territory" means the territory described in Schedule 1 to Appendix A to this Agreement, subject to any reservations or exceptions contained in this Agreement.
4.02 Protected Territory.
Once you have selected and we have accepted a Premises in the Site Selectin Area, we will designate an area within the confines of your Site Selection Area as your Protected Territory.
During the term of this Agreement and any extensions, neither Franchisor nor any affiliate will operate, or grant others the right to open and operate, a Beauty Bungalows location using the Marks within your Protected Territory, but Franchisor, its affiliates, and its franchisees have the right to do so anywhere outside your Protected Territory as designated in Appendix A to this Agreement.
Once established, the boundaries of Franchisee's Protected Territory will not be adjusted during the Term without the written consent of both parties hereto.
- 4.03 Solicitation.
Franchisee will have the right to solicit potential Customers within the Protected Territory.
Franchisee may not knowingly, directly or indirectly, solicit or endeavor in any way to entice or lure customers of another Beauty Bungalows franchisee except, however, the general solicitation of potential Customers through direct mail and social media advertising, when intended as a general solicitation across large, multiple geographic areas, is not a violation of this provision.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, a Protected Territory is an area designated within the Site Selection Area, which is defined in Schedule 1 to Appendix A of the Franchise Agreement. Once Beauty Bungalows accepts a Premises in the Site Selection Area, they will designate the Protected Territory.
During the term of the Franchise Agreement and any extensions, Beauty Bungalows and its affiliates will not operate or grant others the right to open and operate a Beauty Bungalows location using the Marks within the franchisee's Protected Territory. However, Beauty Bungalows, its affiliates, and its franchisees retain the right to operate outside the Protected Territory.
The boundaries of the Protected Territory will not be adjusted during the Term of the agreement without the written consent of both the franchisee and Beauty Bungalows. The franchisee has the right to solicit potential customers within their Protected Territory but may not knowingly solicit customers of another Beauty Bungalows franchisee, with the exception of general solicitations through direct mail and social media advertising across large geographic areas.