Under what condition is the Lease Rider Review fee charged to a Beauty Bungalows franchisee?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, a franchisee will be charged a Lease Rider Review fee of $500 when they hire an attorney to review the lease rider and negotiate with their landlord on Beauty Bungalows's behalf, and Beauty Bungalows has not pre-negotiated a rate with that attorney. This fee covers the cost that Beauty Bungalows incurs to have an attorney review the lease rider and negotiate with the landlord. The fee is due upon invoicing.

This means that if a Beauty Bungalows franchisee uses an attorney for lease negotiations that is not pre-approved or has pre-negotiated rates with Beauty Bungalows, the franchisee will have to pay this fee. It is important for prospective franchisees to understand this condition, as it can add to the initial costs of setting up their Beauty Bungalows franchise. Franchisees should inquire about the list of pre-negotiated attorneys to avoid this additional expense.

In the franchise industry, it is common for franchisors to either provide lease negotiation support or require franchisees to use approved attorneys to ensure brand consistency and protect their interests. The Lease Rider Review fee is a mechanism for Beauty Bungalows to ensure that lease agreements align with their standards, even when franchisees choose to use their own legal representation. By pre-negotiating rates with certain attorneys, Beauty Bungalows aims to control costs for its franchisees while maintaining quality control over lease terms.