Under what circumstances related to the Development Schedule can the Beauty Bungalows agreement be terminated?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement expires at midnight on the last Opening Deadline date listed on the Development Schedule unless this Agreement is terminated sooner as provided in other sections of this Agreement.
Notwithstanding anything to the contrary herein, a termination of this Agreement resulting from your failure to open and thereafter operate Franchised Businesses in accordance with the Development Schedule will not, in itself, constitute cause for us to terminate any previously executed Franchise Agreement in effect at the time of such termination.
Upon termination of this Agreement for any other reason whatsoever, we will retain the Development Fee and you will not be relieved of any of your obligations, debts, or liabilities hereunder, including without limitation any debts, obligations, or liabilities which have accrued prior to such termination. All rights and remedies of the parties hereto shall be cumulative and not alternative, in addition to and not exclusive of any other rights or remedies which are provided for herein or which may be available at law or in equity in case of any breach, failure or default or threatened breach, failure or default of any term, provision or condition of this Agreement. The rights and remedies of the parties hereto shall be continuing and shall not be exhausted by any one or more uses thereof and may be exercised at any time or from time to time as often as may be expedient; and any option or election to enforce any such right or remedy may be exercised or taken at any time and from time to time.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Area Development Agreement expires on the last Opening Deadline date listed on the Development Schedule. However, the agreement can be terminated sooner if other conditions specified in the agreement are met.
If a franchisee fails to open and operate Franchised Businesses according to the Development Schedule, Beauty Bungalows has the right to terminate the Area Development Agreement. However, the FDD specifies that this termination of the Area Development Agreement, resulting from failure to adhere to the Development Schedule, does not automatically allow Beauty Bungalows to terminate any pre-existing Franchise Agreements that are already in effect at the time of termination.
In the event of termination, Beauty Bungalows will retain the Development Fee, and the franchisee remains responsible for any outstanding obligations or debts that accrued before the termination. This includes any liabilities that existed before the termination date. Beauty Bungalows' rights and remedies are cumulative and can be exercised at any time, and the decision to enforce any right or remedy can be made at any time.