What is the relationship between the Collateral Assignment of Telephone Numbers and the Beauty Bungalows Franchise Agreement?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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APPENDIX C TO FRANCHISE AGREEMENT
COLLATERAL ASSIGNMENT OF TELEPHONE NUMBERS, ADDRESSES, AND LISTINGS
| THIS ASSIGNMENT is entered into | this date , in accordance with theterms of that | |-----------------------------------------------------|---------------------------------------------------------------------------------------------| | certain Beauty Bungalows Franchising, LLC | Franchise Agreement (the "Franchise Agreement") | | between | ("Franchisee") and Beauty Bungalows Franchising, LLC, a | | Wyoming | limited liability company ("Franchisor"), executed concurrently with this Assignment, under | | which Franchisor granted Franchisee the | right to own and operate a Beauty Bungalows Franchise located | | at | (the "Franchise Business"). | FOR VALUE RECEIVED, Franchisee hereby assigns to Franchisor those certain telephone numbers, addresses, domain names, locators, directories, and listings (collectively, the "Numbers, Addresses, and Listings") associated with Franchisor's trade and service marks and used from time to time in connection with the operation of the Franchise Business at the address provided above. This Assignment is for collateral purposes only and, except as specified herein, Franchisor shall have no liability or obligation of any kind whatsoever arising from or in connection with this Assignment, unless Franchisorshall notify the telephone, Internet, email, electronic network, directory, and listing entities with which Franchisee has dealt (all such entities are collectively referred to herein as "Provider Companies") to effectuate the assignment pursuant to the terms hereof.
Upon termination or expiration of the Franchise Agreement (without renewal or extension), Franchisor shall have the right and is hereby empowered to effectuate the Assignment of the Numbers, Addresses, and Listings and, in such event, Franchisee shall have no further right, title or interest in the Numbers, Addresses, and Listings, and shall remain liable to the Provider Companies for all past due fees owing to the Provider Companies on or before the effective date of the assignment hereunder.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Collateral Assignment of Telephone Numbers, Addresses, and Listings is directly related to the Franchise Agreement. Appendix C of the Franchise Agreement covers the Collateral Assignment of Telephone Numbers, Addresses, and Listings. The Franchise Agreement grants the franchisee the right to operate a Beauty Bungalows franchise.
The Collateral Assignment ensures that Beauty Bungalows retains control over the telephone numbers, addresses, domain names, locators, directories, and listings associated with its trade and service marks. This assignment is for collateral purposes, meaning it serves as security for Beauty Bungalows' rights to these assets. Upon termination or expiration of the Franchise Agreement, Beauty Bungalows has the right to effectuate the assignment of these numbers, addresses, and listings.
This means that if a franchisee's agreement ends, Beauty Bungalows can take control of the phone numbers and online listings associated with the business. The franchisee loses all rights to these assets upon termination or expiration of the agreement and is responsible for any outstanding fees owed to the provider companies. This arrangement protects Beauty Bungalows' brand identity and ensures consistency across all franchise locations, as it allows Beauty Bungalows to maintain control over key contact information and online presence.