Under what conditions can Beauty Bungalows terminate the Franchise Agreement if a premises is not acquired?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
her Beauty Bungalows, or any other reasonable criteria, as set forth in Section 10.02. Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease. Franchisee must secure a Premises that we have approved by signing a lease or purchase agreement within ninety (90) days of the date of this Agreement. We may extend the deadline for acquisition of a Premises by 90 days in our sole discretion, and we may require you to pay an extension fee equal to two thousand five hundred dollars ($2,500.00), and execute a general release as a condition of us agreeing to grant such extension. Franchisor will approve or disapprove your site within thirty (30) days after receiving notice of the proposed Franchise location from Franchisee. If we have accepted a Premises
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, Beauty Bungalows may terminate the Franchise Agreement if a franchisee does not secure an approved premises within a specific timeframe. Specifically, if Beauty Bungalows has accepted a premises for the franchisee's business, and the franchisee is either unable or unwilling to acquire that premises (or an alternative premises that Beauty Bungalows accepts), Beauty Bungalows has the right to terminate the agreement. This termination can occur if the franchisee fails to acquire the premises within 90 days of the Effective Date of the agreement.
Beauty Bungalows may, at its sole discretion, extend the initial 90-day deadline for acquiring a premises by an additional 90 days. However, this extension is not guaranteed. As a condition of granting such an extension, Beauty Bungalows may require the franchisee to pay an extension fee of $2,500 and execute a general release.
This clause highlights the importance of securing an appropriate location promptly. The franchisee bears the risk of termination if they cannot finalize a lease or purchase agreement for an approved site within the given timeframe, even after Beauty Bungalows has accepted the location. The potential for an extension exists, but it is subject to Beauty Bungalows's approval and may involve additional costs and legal releases for the franchisee.