Under an ADA with Beauty Bungalows, who determines the Development Schedule for opening additional units?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into an ADA with us and unless otherwise agreedto in writing, you will be required to sign our ADA (Exhibit H) and agree to open your additional units upon a set schedule that we determine (your "Development Schedule"). Your failure to meet the development schedule is a default under your ADA. Upon default we may terminate your rights to develop one or more of the additional franchises in your Development Schedule or terminate the ADA in its entirety. However, a default under the ADA will not, by itself, be a default of any effective Franchise Agreements between you and us.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, if a franchisee enters into an Area Development Agreement (ADA), Beauty Bungalows determines the Development Schedule for opening additional franchise units. The franchisee is required to sign the ADA and agree to open additional units based on the schedule set by Beauty Bungalows.
Failure to adhere to the Development Schedule constitutes a default under the ADA. In the event of a default, Beauty Bungalows has the right to terminate the franchisee's rights to develop one or more of the additional franchises outlined in the Development Schedule or even terminate the entire ADA.
It is important to note that a default under the ADA does not automatically trigger a default of any existing Franchise Agreements between the franchisee and Beauty Bungalows. This means that while the rights to develop new locations can be terminated, the existing operational franchises may not be affected.