Under what conditions can the boundaries of a Beauty Bungalows Protected Territory be adjusted?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, the boundaries of a franchisee's protected territory are generally fixed for the duration of the franchise term. The FDD specifies that unless both Beauty Bungalows and the franchisee agree in writing, the protected territory boundaries will not change, regardless of population increases or decreases within that territory. This provides a level of certainty for the franchisee, as their territory is not subject to change based on demographic shifts.

However, the size of the Protected Territory itself depends on the location of the Beauty Bungalows franchise. The standard Protected Territory is a two-mile radius around the business. If the business is in a major metropolitan downtown area or a similarly populated central business district, the Protected Territory may be smaller, ranging from a two-block radius to a two-mile radius, as determined by Beauty Bungalows. This acknowledges the higher density and potential customer base in urban centers.

It is important to note that even within a Protected Territory, Beauty Bungalows retains certain rights. Beauty Bungalows and its affiliates can sell products under the brand's trademarks through alternative distribution channels like the Internet, catalogs, and telemarketing, without compensating the franchisee. Additionally, Beauty Bungalows can use alternative distribution channels to sell products or services under different trademarks within the franchisee's Protected Territory. This means that while franchisees have some territorial protection, they may still face competition from the franchisor itself and other channels of distribution.