Is the Site Selection Area for a Beauty Bungalows franchise exclusive?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Your franchise is for the specific Site that we approve. You must select a site that we have accepted within the non-exclusive Site Selection Area that we specify. The Site will be added to the Franchise Agreement once we accept it and you secure it. You Site Selection Area is not exclusive and is only intended to give you a general indication of the area within which you locate the Site for your Beauty Bungalows Franchise.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Once you have secured the Site for your Beauty Bungalows franchise, we will provide you an area in which you will have protected rights (the "Protected Territory"). Your Protected Territory will typically be a twomile radius around your Business, unless your Business is located in a major metropolitan downtown area or similarly situated/populated central business district (a "Central Business District"). If your Business is located in a Central Business District, your Protected Territory may be limited to a geographic area comprised of anywhere from a radius of two blocks to two miles around your Business, as we deem appropriate in our discretion. The size of your Protected Territory may vary from the territory granted to other franchisees based on the location and demographics surrounding your Business.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the Site Selection Area granted to a new franchisee is not exclusive. The FDD specifies that the Site Selection Area is only a general indication of where the franchisee may locate their Beauty Bungalows franchise. This means that Beauty Bungalows may allow other franchisees to open locations within the same Site Selection Area. As a result, a franchisee may face competition from other franchisees, outlets that Beauty Bungalows owns, or other channels of distribution or competitive brands that Beauty Bungalows controls.
Once the franchisee secures an approved site, Beauty Bungalows will grant a Protected Territory, which is typically a two-mile radius around the business. However, if the Beauty Bungalows location is in a Central Business District, the Protected Territory may be limited to a geographic area comprised of anywhere from a radius of two blocks to two miles around the business, as Beauty Bungalows deems appropriate. The boundaries of the Protected Territory may be described using zip codes, streets, landmarks, or county lines and will be defined in Attachment I of the Franchise Agreement.
Beauty Bungalows retains the right to sell products under the Marks within and outside the Protected Territory through alternative distribution channels such as the Internet, catalog sales, telemarketing, or other direct marketing sales. The franchisee cannot use alternative distribution channels to make sales outside or inside the Protected Territory, except as described in the Franchise Agreement, and will not receive compensation for Beauty Bungalows' sales through these alternative distribution channels. Beauty Bungalows also reserves the right to use, license, and franchise the use of trademarks or service marks that are not the same or similar to the Marks, whether in alternative channels of distribution or at any location including within the Protected Territory, in association with operations that are the same as, similar to, or different than Beauty Bungalows Franchises.