Have any states refused to register the Beauty Bungalows franchise, by order or otherwise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
CHISEE IS A CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER ENTITY, AN OFFICER AND EACH OF ITS PRINCIPAL OWNERS MUST EXECUTE THIS ACKNOWLEDGMENT.**
| Signed: | |
|---|---|
| Print Name: | |
| Date: | |
| Signed: | |
| Print Name: | |
| Date: |
EXHIBIT E
STATE ADDENDA AND AGREEMENT RIDERS
ADDENDUM TO FRANCHISE AGREEMENT, MULTI-UNIT DEVELOPMENT AGREEMENT, SUPPLEMENTAL AGREEMENTS, AND FRANCHISE DISCLOSURE DOCUMENT FOR CERTAIN STATES FOR BEAUTY BUNGALOWS FRANCHISING, LLC
The following modifications are made to the Beauty Bungalows Franchising, LLC ("Franchisor," "us," "we," or "our") Franchise Disclosure Document ("FDD") given to franchisee ("Franchisee," "you," or "your") and may supersede certain portions of the Franchise Agreement between you and us dated as of the Effective Date set forth in your franchise Agreement ("Franchise Agreement"). When the term "Franchisor's Choice of Law State" is used, it means the laws of the state of California, subject to any modifications as set forth in the addenda below. When the term "Supplemental Agreements" is used, it means Area Development Agreement.
Certain states have laws governing the franchise relationship and franchise documents. Certain statesrequire modifications to the FDD, Franchise Agreement and other documents related to the sale of a franchise. This State Specific Addendum ("State Addendum") will modify these agreements to comply with the state's laws. The terms of this State Addendum will only apply if you meet the requirements of theapplicable state independently of your signing of this State Addendum. The terms of this State Addendumwill override any inconsistent provision of the FDD, Franchise Agreement or any Supplemental Documents. This State Addendum only applies to the following states: California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If your state requires these modifications, you will sign this State Addendum along with the Franchise Agreement and any Supplemental Agreements.
CALIFORNIA
The California Franchise Investment Law requires a copy of all proposed agreements relating to the sale of the Franchise be delivered together with the FDD.
California Corporations Code Section 31125 requires us to give to you an FDD approved by the Department of Business Oversight before we ask you to consider a material modification of your Franchise Agreement.
The Franchise Agreement and the Supplemental Agreements contain provisions requiring binding arbitration with the costs being awarded to the prevailing party. The arbitration will occur in Franchisor's Choice of Law State. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Franchise Agreement or Supplemental Agreements restricting venue to a forum outside the State of California. The Franchise Agreement contains a mediation provision. As such, the parties shall each bear their own costs of mediation and shall share equally the filing fee and the mediator's fees.
Neither Franchisor nor any other person listed in Item 2 of the FDD is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, certain states require specific addenda to the franchise agreement and related documents. These states include California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
The presence of these addenda indicates that Beauty Bungalows has taken steps to comply with the franchise laws of these states, rather than facing a refusal to register. The addenda modify the FDD, Franchise Agreement, and other documents to align with each state's specific legal requirements. This ensures that the franchise offering meets the necessary regulatory standards for those states.
For prospective franchisees, this means that if they are considering opening a Beauty Bungalows franchise in one of these states, they will need to review and sign a state-specific addendum. This addendum will override any conflicting provisions in the standard franchise agreement, providing additional protections or clarifying specific rights and obligations under that state's laws. Franchisees should carefully review these addenda with legal counsel to fully understand their implications.
The FDD also includes specific modifications for Rhode Island and Virginia. For Rhode Island, a provision is included stating that any clause restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void with respect to claims enforceable under the Rhode Island Franchise Investment Act. For Virginia, it is stated that it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any right given to them under the franchise, according to the Virginia Retail Franchising Act.