Are there any penalties for cancelling the Beauty Bungalows transaction within the cancellation period?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
assignment, novation, waiver or estoppel which purports to relieve any person from liability imposed by the Iowa Business Opportunity Promotions Law (Iowa Code Ch. 551A) is void to the extent that such provision violates such law.
The following language will be added to the Franchise Agreement:
| (enter date of transaction) |
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| You may cancel this transaction, without penalty or obligation, within three business days from the above |
| date. |
| If you cancel, any property traded in, any payments made by you under the contract or sale, and any |
NOTICE OF CANCELLATION
seller of your cancellation notice, and any security interest arising out of the transaction will be canceled. If you cancel, you must make available to the seller at your residence or business address, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's
negotiable instrument executed by you will be returned within ten business days following receipt by the
If you do not agree to return the goods to the seller or if the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice to Beauty Bungalows Franchising, LLC at 257 Wake Forest Road, Costa Mesa, CA 92626 not later than midnight of the third business day after the Effective Date.
I hereby cancel this transaction.
Franchisee: ________________________ Signed: ___________________________ Name: ____________________________ Date: _____________________________
expense and risk.
MARYLAND
AMENDMENTS TO FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENTS AND AREA DEVELOPMENT AGREEMENT
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.
Item 17 of the FDD and the Franchise Agreement are amended to state: "The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under theMaryland Franchise Registration and Disclosure Law."
Item 17 of the FDD and sections of the Franchise Agreement and Area Development Agreement are amended to state that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the Franchise.
The Franchise Agreement and Franchise Disclosure Questionnaire are amended to state that all representationsrequiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to, nor shall they act as, a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under Federal Bankruptcy Law (11 U.S.C.A Sec. 101 et seq.).
No Experience: We have no experience operating a franchise of this nature, and we have almost no experience operating the type of business you will be operating as our franchisee. This franchise is likely a risk investment.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, a franchisee may cancel the transaction without penalty or obligation within a specific cancellation period. The cancellation period is either three or five business days from the transaction date, depending on the specific agreement. If the franchisee cancels within this period, any payments made under the agreement and any negotiable instrument executed by the franchisee will be returned within ten business days following the seller's receipt of the cancellation notice. Additionally, any security interest arising from the transaction will be canceled.
However, the franchisee has certain obligations upon cancellation. They must make available to Beauty Bungalows any goods delivered under the agreement, in substantially as good condition as when received, at their residence or business address. Alternatively, the franchisee may comply with Beauty Bungalows' instructions regarding the return shipment of the goods at the franchisee's expense and risk.
If the franchisee makes the goods available, and Beauty Bungalows does not pick them up within 20 days of the cancellation notice, the franchisee may retain or dispose of the goods without further obligation. Conversely, if the franchisee fails to make the goods available or agrees to return them but fails to do so, they remain liable for all obligations under the agreement. To cancel the transaction, the franchisee must mail or deliver a signed and dated copy of the cancellation notice or any other written notice to Beauty Bungalows Franchising, LLC at the specified address before midnight of the third or fifth business day after the effective date, depending on the agreement.