Have any states revoked or suspended the right to offer Beauty Bungalows franchises?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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IN WITNESS WHEREOF, the parties have executed this Lease Rider on the date signed below:
COMPANY: Beauty Bungalows Franchising, LLC LANDLORD: Effective Date of this Lease Rider: Premises Address:
FRANCHISEE ACKNOWLEGMENT/COMPLIANCE CERTIFICATION
DO NOT SIGN THIS STATEMENT IF YOU ARE A RESIDENT OF, OR INTEND TO OPERATE THE FRANCHISED BUSINESS IN, ANY OF THE FOLLOWING STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI (EACH A REGULATED STATE).
FOR PROSPECTIVE FRANCHISEES THAT RESIDE IN OR ARE SEEKING TO OPERATE THE FRANCHISED BUSINESS IN ANY REGULATED STATE, SUCH PROSPECTIVE FRANCHISEE SHOULD NOT COMPLETE THIS QUESTIONNAIRE OR TO RESPOND TO ANY OF THE QUESTIONS CONTAINED IN THIS QUESTIONNAIRE.
As you know, you and we are entering into a Franchise Agreement for the operation of a Beauty Bungalows franchise. The purpose of this Compliance Certification is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate, or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question.
19. Acknowledgments and Representations*.
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Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, certain states require specific addenda to the franchise agreement and related documents. Specifically, the document includes addenda for California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. These addenda modify the agreements to comply with each state's franchise laws.
The presence of these state-specific addenda suggests that Beauty Bungalows must adhere to additional regulations and provide specific disclosures or modifications to their standard franchise agreement in those states. This is a common practice in franchising, as state laws vary significantly regarding franchise relationships and franchise sales.
Furthermore, the Franchisee Acknowledgement/Compliance Certification includes a statement that prospective franchisees who are residents of or intend to operate in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin should not sign the statement. This suggests that there are specific legal considerations or requirements in these states that necessitate a different approach to the acknowledgment and compliance process. It does not explicitly state that the right to offer franchises has been revoked or suspended in these states, but rather that additional compliance measures are in place.