Under what conditions can the Beauty Bungalows Development Agreement be modified, as described in Section 9?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary | |
|---|---|---|---|
| law). Any promises outside the Development Agreement, the Franchise Agreements, and this FDD may not be enforceable. However, nothing in the Franchise Agreement will have the effect of disclaiming any of the representations made in this FDD. | |||
| U | Dispute resolution by arbitration or mediation | Section 8 | The dispute resolution provisions of the Franchise Agreement apply to any disputes under the Development Agreement (subject to applicable state law) |
| V | Choice of forum | Section 8 | The choice of forum provisions of the Franchise Agreement apply to the Development Agreement (subject to applicable state law) |
| W | Choice of law | Section 8 | The choice of law provisions of the Franchise Agreement apply to the Development Agreement (subject to state law) |
| Provision | Section in ADA Agreement | Summary | |
| G | "Cause" defined - curable defaults | Not Applicable | Not Applicable |
| H | "Cause" defined - non-curable defaults | Section 6.1 | You fail to have open and operating the minimum number of Franchised Businesses specified in the Development Schedule by any Opening Deadline specified in the Development Schedule; any Franchise Agreement is terminated a result of default; or you breach or otherwise fail to comply fully with any other provision of the Development Agreement. |
| I | Franchisee's obligations on termination/nonrenewal | Section 6.2 | You will lose the right to continue to develop Franchised Businesses in your Development Area. |
| J | Assignment of contract by franchisor | Section 7 | Fully assignable and transferrable by us. |
| K | "Transfer" by franchisee - defined | Section 7 | Includes transfer of the Development Agreement, any interest in the Development Agreement, or, if you are a business entity, any interest in the entity. |
| L | Franchisor approval of transfer by franchisee | Section 7 | We have the right to approve or not approve all transfers in our sole discretion. |
| M | Conditions for franchisor approval of transfer | Section 7 | We have sole discretion in setting conditions for our approval of a transfer. |
| N | Franchisor's right of first refusal to acquire franchisee's Business. | Section 7 | We have the first right of refusal on all transfer, exercisable withing 30 days of receiving an executed copy of the contract of transfer. |
| O | Franchisor's option to purchase franchisee's Business | Not Applicable | Not applicable |
| P | Death or disability of franchisee | Not Applicable | We have the right approve or disapprove any transfer in our sole discretion. |
| Q | Non-competition covenants during the term of franchise | Section 8 | The non-competition covenants in your Franchise Agreement shall apply to your Development Agreement |
| R | Non-competition covenants after the franchise is terminated or expires | Section 8 | The non-competition covenants in your Franchise Agreement shall apply to your Development Agreement. |
| S | Modification of agreement | Section 9 | No modifications to the Development Agreement unless you and we agree in writing. We may amend the Operations Manual at any time. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–40)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, Section 9 of the Development Agreement specifies that modifications can only occur if both the franchisee and Beauty Bungalows agree to the changes in writing. This requirement ensures that any alterations to the original agreement are mutually understood and documented, providing a clear record of the agreed-upon terms.
This stipulation is crucial for prospective Beauty Bungalows multi-unit developers as it protects their interests by preventing unilateral changes to the Development Agreement by the franchisor. It also provides a mechanism for negotiating changes that may be necessary due to unforeseen circumstances or evolving business conditions. Franchisees should be aware that verbal agreements or understandings will not be enforceable; all modifications must be formalized in writing to be legally binding.
However, the FDD also states that Beauty Bungalows may amend the Operations Manual at any time. While the Development Agreement itself requires written consent for modifications, the Operations Manual, which contains the detailed procedures and standards for operating a Beauty Bungalows franchise, can be changed unilaterally by the franchisor. Franchisees should therefore pay close attention to updates to the Operations Manual, as these changes can impact their day-to-day operations and compliance requirements.