Can Beauty Bungalows sell to unrelated franchises through wholesale?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
hisees, or others inside and outside of your Protected Territory.
We reserve the following rights, among others:
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- to own, franchise, or operate Beauty Bungalows Franchises at any location outside of the Protected Territory, regardless of the proximity to your Site;
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- to use the Marks and the System to sell any goods or services, including salon equipment or services, or beauty supplies similar to those which you will sell, through any alternative distribution channels within or outside of the Protected Territory.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, Beauty Bungalows retains the right to sell goods or services similar to those sold by franchisees through various alternative distribution channels. These channels include wholesale sales to unrelated franchises, as well as television, mail order, catalog sales, and the Internet. However, Beauty Bungalows exclusively reserves the Internet as a distribution channel for itself, prohibiting franchisees from independently marketing or conducting e-commerce online.
This reservation of rights means that while a Beauty Bungalows franchisee focuses on operating their physical location, Beauty Bungalows can simultaneously pursue other sales avenues without compensating the franchisee, except as described in the FDD. This could create competition for the franchisee within their Protected Territory, as Beauty Bungalows can sell directly to customers through these alternative channels.
For a prospective franchisee, this highlights the importance of understanding the potential impact of these alternative distribution channels on their business. While franchisees are granted a Protected Territory, Beauty Bungalows retains significant control over how products and services are distributed, potentially affecting a franchisee's revenue and market share. It is important to note that the franchisee will not receive compensation for sales made through these alternative distribution channels, except as described in the FDD.