What is the required action if the operating assets of a Beauty Bungalows franchise are destroyed or damaged?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
If the property, equipment, and/or vehicles ("Operating Assets") used in the operation of any Franchised Business in your Development Schedule are destroyed or damaged by any cause beyond your control such that they may no longer continue to be utilized for the operation of a particular Franchised Business, you must immediately give us notice of such destruction or damage ("Destruction Event"). You must diligently work to repair and replace the Operating Assets of your Franchised Business as soon as possible to resume operation of your Franchised Business. If a Franchised Business is closed due to a Destruction Event, the Franchised Business will continue to be deemed "in operation" for the purpose of this Agreement for up to 90 days after the Destruction Event occurs. If a Franchised Business (i) is closed in a manner other than those described in this Section 3.2 or as otherwise agreed by us in writing or (ii) fails to reopen within 90 days after a Destruction Event, then we may exercise our rights under Section 6.2 (Our Remedies). In the event the Operating Assets are completely destroyed or otherwise incapable of being repaired following a Destruction Event, we will not exercise the remedies set forth under Section 6.2 provided, that (a) within the 30 days after the Destruction Event you have made arrangements with us or our designated supplier to obtain new Operating Assets for use in your Franchised Business; and (b) you are open and operating your Franchised Business in the protected territory within ninety (90) days of the Destruction Event.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, if the operating assets of a franchised business are destroyed or damaged by causes beyond the franchisee's control, the franchisee must immediately notify Beauty Bungalows of the destruction or damage. The franchisee is then required to diligently work to repair or replace the operating assets as quickly as possible to resume business operations.
For the purpose of the franchise agreement, a Beauty Bungalows franchise that is closed due to such an event will still be considered "in operation" for up to 90 days following the event. However, if the franchise remains closed for longer than 90 days, or closes for any other reason not explicitly agreed to in writing by Beauty Bungalows, the franchisor reserves the right to exercise its remedies as outlined in Section 6.2 of the agreement.
If the operating assets are completely destroyed and cannot be repaired, Beauty Bungalows will not pursue the remedies in Section 6.2, provided that the franchisee arranges with Beauty Bungalows or its designated supplier to obtain new operating assets within 30 days of the destruction event, and reopens the Beauty Bungalows franchise within 90 days of the destruction event.