How is the Site Selection Area for a Beauty Bungalows franchise defined?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.21 "Site Selection Area" means the area in which you will have the non-exclusive right to search for a Premises to locate your Beauty Bungalows Franchise. Your Site Selection Area is set forth in Appendix A to this Agreement.
4. TERRITORY
- 4.01 Franchise.
Franchisee may operate the Franchise only at the mutually agreed upon Premises to be located within the Site Selection Area set forth in Appendix A to this Agreement.
Once you have selected and we have accepted a Premises in the Site Selectin Area, we will designate an area within the confines of your Site Selection Area as your Protected Territory.
If we accept the proposed site and you obtain it, we will insert a description of the specific location on Schedule 1 to Appendix A.
Franchisee must secure a Premises that we have approved by signing a lease or purchase agreement within ninety (90) days of the date of this Agreement.
We may extend the deadline for acquisition of a Premises by 90 days in our sole discretion, and we may require you to pay an extension fee equal to two thousand five hundred dollars ($2,500.00), and execute a general release as a condition of us agreeing to grant such extension.
Franchisor will approve or disapprove your site within thirty (30) days after receiving notice of the proposed Franchise location from Franchisee.
YOU ACKNOWLEDGE AND AGREE THAT OUR ACCEPTANCE OR PROPOSAL OF A PROPOSED SITE IS NOT A WARRANTY OR REPRESENTATION OF ANY KIND AS TO THE POTENTIAL SUCCESS OR PROFITABILITY OF YOUR BUSINESS. WHILE WE MAY PROVIDE ASSISTANCE AND GUIDANCE, IT IS SOLELY YOUR RESPONSIBILITY TO SELECT A SUITABLE SITE FOR THE BUSINESS.
Once we have defined the Protected Territory, you will have no territorial or other rights in those portions of the Site Selection Area that are outside the Protected Territory.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Site Selection Area is defined as the area where a franchisee has the non-exclusive right to search for a location, or Premises, for their Beauty Bungalows franchise. The specific details of the Site Selection Area are outlined in Appendix A of the Franchise Agreement. Once a location is selected and approved, Beauty Bungalows will designate a Protected Territory within the Site Selection Area. Franchisees can only operate at the mutually agreed-upon Premises within the Site Selection Area.
This means that a prospective Beauty Bungalows franchisee will need to consult Appendix A to understand the geographic boundaries within which they can propose potential locations. The franchisee does not have the right to operate outside of this designated area. The franchisee must secure a Premises that Beauty Bungalows has approved by signing a lease or purchase agreement within ninety (90) days of the date of the Franchise Agreement. Beauty Bungalows may extend the deadline for acquisition of a Premises by 90 days and may require the franchisee to pay an extension fee equal to $2,500.00 and execute a general release as a condition of agreeing to grant such extension.
Beauty Bungalows must approve or disapprove a proposed site within thirty (30) days after receiving notice of the proposed Franchise location from the franchisee. The document also states that Beauty Bungalows' assistance in site selection does not constitute a warranty regarding the property or lease. The franchisee has the responsibility to select a suitable site for the business. If Beauty Bungalows accepts a proposed site and the franchisee obtains it, Beauty Bungalows will insert a description of the specific location on Schedule 1 to Appendix A.
It is important to note that after the Protected Territory is defined, the franchisee will not have territorial rights in those portions of the Site Selection Area that are outside the Protected Territory. The franchisee must return a signed copy of Schedule 1 to Appendix A acknowledging the Protected Territory designated by Beauty Bungalows.