What is the specific amendment made to the Beauty Bungalows Franchise Agreement and Franchise Disclosure Questionnaire regarding releases, estoppels, or waivers of liability?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ined in the franchise agreement or elsewhere are void and unenforceable in Washington.
The franchisee's obligations to indemnify, reimburse, and hold harmless referenced in Section 12.12 of the Franchise Agreement do not extend to liabilities caused by the franchisor's negligence, willful misconduct, strict liability, or fraud.
Beauty Bungalows Franchising, LLC No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving and claims under any
applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Section 18.11 of the Franchise Agreement shall not apply to Washington Franchisees.
WISCONSIN
The Wisconsin Fair Dealership Law, Chapter 135 of the Wisconsin Statutes supersedes any provision of the Franchise Agreement if such provision is in conflict with that law. The Franchise Disclosure Document, the Franchise Agreement and the Supplemental Agreements are amended accordingly.
[SIGNATURE PAGE FOLLOWS]
APPLICABLE ADDENDA
If any one of the preceding Addenda for specific states ("Addenda") is checked as an "Applicable Addenda" below, then that Addenda shall be incorporated into the Franchise Disclosure Document, Franchise Agreement and any other specified agreement(s) entered into by us and the undersigned Franchisee. To the extent any terms of an Applicable Addenda conflict with the terms of the Franchise Disclosure Document, Franchise Agreement and other specified agreement(s), the terms of the Applicable Addenda shall supersede the terms of the Franchise Agreement.
California Hawaii Illinois Iowa Indiana Maryland Michigan Minnesota New York North Dakota Ohio Rhode Island South Dakota Virginia Washington Wisconsin Dated: BEAUTY BUNGALOWS FRANCHISING, LLC [FRANCHISEE]
EXHIBIT K
LEASE RIDER
THIS LEASE RIDER is entered into between the undersigned parties.
| WHEREAS, Company and Franchisee are parties to a Franchise Agreement dated, | |
|---|---|
| (the "Franchise Agreement"); and |
WHEREAS, the Franchise Agreement provides that Franchisee will operate a Beauty Bungalows ("Business") at a location that Franchisee selects, and Company accepts; and
WHEREAS, Franchisee and Landlord propose to enter into the lease to which this Rider is attached (the "Lease"), pursuant to which Franchisee will occupy premises located at the address listed on the signature page below (the "Premises") for the purpose of constructing and operating the Business in accordance with the Franchise Agreement; and
WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;
NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
-
- During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Business and for no other purpose.
-
- Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the Beauty Bungalowssystem as Company may from time to time prescribe for the Business.
-
- Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
Beauty Bungalows Franchising, LLC Attn: Franchise Department 257 Wake Forest Rd. Costa Mesa, CA 92626 franchise@beautybungalows.com
-
- Company will have the right, without being guilty of trespass or any other crime or tort, to enter the Premises at any time or from time to time (i) to make any modification or alteration it considers necessary to protect the Beauty Bungalows system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, or (iii) to remove the distinctive elements of the Beauty Bungalows trade dress upon the Franchise Agreement's expiration or termination. Neither Company nor Landlord will be responsible to Franchisee for any damages Franchisee might sustain as a result of action Company takes in accordance with this provision.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, several provisions address releases, estoppels, and waivers of liability, particularly concerning state-specific laws and the franchisee's rights. For instance, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This clause overrides any conflicting terms in other documents executed in connection with the franchise.
Furthermore, the FDD includes a Full and Final Release agreement to be used during the transfer of a franchise or for other designated purposes, but it explicitly states that it should not be signed at the time of the initial franchise award. This release covers all claims, demands, damages, and actions against Beauty Bungalows Franchising, LLC, and its related parties. It specifies that the settlement is a compromise of disputed claims and does not constitute an admission of liability.
Certain states, such as Illinois and Maryland, have laws that prevent the representations made by the franchisee in the Franchise Disclosure Questionnaire from acting as a release, estoppel, or waiver of liability under their respective franchise laws. Additionally, state-specific addenda modify the Franchise Agreement and FDD to comply with individual state laws, superseding any inconsistent provisions in the standard agreements. Prospective franchisees should carefully review these state-specific addenda to understand their rights and obligations in their particular state.