What section of the Beauty Bungalows agreement discusses Multi-Area Marketing Programs?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.17 "Multi-Area Marketing Program(s)" or "MAM Program(s)" means regional, national, or international marketing, advertising, or promotional program(s) performed in conjunction with other franchisees or the Franchisor, designed to increase business, such as marketing to multi-area customers, customer incentive programs, Internet, social media, shows, events, yellow pages, directories, affinity marketing, vendor programs, and co-branding programs.
Subject to the expenditure limit set forth in Section 9.03, Franchisee must participate, at Franchisee's sole cost and expense, in any Multi-Area Marketing Programs required by Franchisor.
- (d) to implement Multi-Area Marketing Programs which may allow Franchisor or others to solicit or sell to Customers or potential Customers anywhere, as set forth in Section 9.
In such a program, Franchisee will have the option of servicing any Customer within its Protected Territory.
Franchisor also reserves the right to issue mandatory policies to coordinate such Multi-Area Marketing Programs.
15.01 Covenants Not to Compete. During the term of this Agreement and for two (2) years after expiration, earlier termination, or approved Transfer of this Agreement for any reason (and during the term of this Agreement and for two (2) years from the date a person ceases to be an owner, shareholder, member, officer, or director of Franchisee), neither Franchisee nor any of Franchisee's owners, shareholders, members, partners, officers, or directors may participate directly or indirectly or serve in any capacity in any Competitive Business. This covenant not to compete applies: (i) during the term of the Agreement, within any state in which Franchisor or franchisees do business; and after termination of the Agreement within a twenty (20) mile radius from the boundary of Franchisee's Protected Territory, and within a twenty (20) mile radius from any franchised, Franchisor-owned, or affiliated company-owned Beauty Bungalows Studio; (ii) on the Internet; and (iii) on any other Multi-Area Marketing channels used by Franchisor.
Franchisee must contribute to the Brand Fund in an amount determined by Franchisor, which contribution amount will not exceed two percent (2%) of Gross Revenue per month, at the same time and in the same manner as the Royalty Fee.
Franchisee's combined total in a given calendar month of required expenses in connection with Multi-Area Marketing Programs and monthly contribution to the Brand Fund will not exceed two percent (2%) of Gross Revenue.
All Multi-Area Marketing Programs are Trade Secrets of Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Multi-Area Marketing Programs are discussed in several sections of the franchise agreement. Section 1.17 defines "Multi-Area Marketing Program(s)" or "MAM Program(s)" as regional, national, or international marketing, advertising, or promotional programs performed with other franchisees or Beauty Bungalows. These programs are designed to increase business through various means, such as marketing to multi-area customers, customer incentives, internet and social media efforts, shows, events, directories, affinity marketing, vendor programs, and co-branding programs. Franchisees are required to participate in these programs at their own expense, subject to expenditure limits outlined in Section 9.03.
Section 4.04(d) also addresses Multi-Area Marketing Programs, stating that Beauty Bungalows reserves the right to implement such programs, which may allow them or others to solicit or sell to customers or potential customers anywhere. Franchisees have the option to service any customer within their protected territory as part of these programs. Beauty Bungalows also reserves the right to issue mandatory policies to coordinate these programs. Section 15.01 discusses covenants not to compete, which apply during the term of the agreement and for two years after its expiration. This covenant extends to any Multi-Area Marketing channels used by Beauty Bungalows.
Section 9.03, referenced in the definition of Multi-Area Marketing Programs, likely contains further details on expenditure limits and franchisee obligations related to these programs. Section 9.04 discusses the Brand Fund, and notes that a franchisee's combined total expenses in connection with Multi-Area Marketing Programs and the monthly Brand Fund contribution will not exceed two percent of gross revenue in a given calendar month. Section 9.05 discusses Marketing Cooperatives, which are different from Multi-Area Marketing Programs, but also involve collective marketing efforts. Finally, the document states that all Multi-Area Marketing Programs are Trade Secrets of Beauty Bungalows.