Does Beauty Bungalows have a right of first refusal to purchase a franchise?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, upon the expiration, non-renewal, or earlier termination of the Franchise Agreement, except if the franchisee terminates it per Section 13.01, Beauty Bungalows has the option to assume the franchisee's remaining lease obligations for thirty days following the date of expiration, non-renewal, or termination. This assumption of lease obligations by Beauty Bungalows does not accrue any liability regarding the lease prior to the effective date of any assignment.

If Beauty Bungalows exercises this option, the franchisee is required to cooperate in assigning any lease related to the franchise to Beauty Bungalows at the franchisee's sole expense. This clause ensures that Beauty Bungalows can maintain control over the location and continue operations if desired, providing a safety net for the brand's presence in a specific market.

For a prospective franchisee, this means that upon the end of the franchise agreement, Beauty Bungalows has the first right to take over the lease of the business location. The franchisee is responsible for the costs associated with transferring the lease to Beauty Bungalows. This could impact the franchisee's ability to sell the business to another buyer at the end of the term, as Beauty Bungalows has priority in assuming the lease.