Are there any provisions in the Beauty Bungalows franchise agreement that are NOT enforceable after termination?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
e performance of all obligations under this agreement. To cancel 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 after the Effective Date. transaction. | | By: | Print Name: Its: |
RHODE ISLAND
§ 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." The FDD, the Franchise Agreement, and the Supplemental Agreements are amended accordingly to the extent required by law.
The above language has been included in this FDD as a condition to registration. The Franchisor and the Franchisee do not agree with the above language and believe that each of the provisions of the Franchise Agreement and the Supplemental Agreements, including all choice of law provisions, are fully enforceable. The Franchisor and the Franchisee intend to fully enforce all of the provisions of the Franchise Agreement, the Supplemental Agreements, and all other documents signed by them, including, but not limited to, all venue, choice-of-law, arbitration provisions and other dispute avoidance and resolution provisions and to rely on federal pre-emption under the Federal Arbitration Act.
VIRGINIA
Item 17(h).
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, certain provisions within the franchise agreement may not be enforceable in specific states due to state laws. In Rhode Island, the Rhode Island Franchise Investment Act states that any provision 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 a claim enforceable under the Act. This means a Beauty Bungalows franchisee in Rhode Island may not be bound by clauses in the franchise agreement that mandate out-of-state venues or laws for dispute resolution.
Similarly, in Virginia, the Virginia Retail Franchising Act makes it unlawful for Beauty Bungalows to use undue influence to induce a franchisee to surrender any rights granted under the franchise agreement. If any provision involves such undue influence, it may not be enforceable. Additionally, any grounds for default or termination stated in the franchise agreement that do not constitute "reasonable cause" as defined by Virginia law may also be deemed unenforceable. This protects Beauty Bungalows franchisees in Virginia from potentially overbearing or unfair franchisor actions.
For Beauty Bungalows franchisees in Washington, Section 18.11 of the Franchise Agreement will not apply. Furthermore, the Wisconsin Fair Dealership Law supersedes any conflicting provision of the Franchise Agreement for franchisees in Wisconsin, meaning that the state law takes precedence over the franchise agreement if there is a conflict. These stipulations highlight the importance of prospective franchisees understanding the specific state laws that may impact the enforceability of certain clauses within the Beauty Bungalows franchise agreement.