Under the Beauty Bungalows franchise agreement, can the manual be modified to conflict with the franchise agreement?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.22 "System" means, collectively, Franchisor's valuable know-how, information, trade secrets, methods, Manuals, standards, designs, methods of trademark usage, copyrightable works, rental space sources and specifications, software, confidential electronic and other communications, methods of Internet usage, marketing programs, and research and development connected with the operation and promotion of the franchised Business, as modified by Franchisor at any time.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the franchise agreement does not explicitly address whether the manual can be modified to conflict with the franchise agreement. However, the FDD does state that the System includes the Manuals, and the System can be modified by Beauty Bungalows at any time. This implies that Beauty Bungalows has the right to modify the manuals.
Typically, franchise agreements are the governing documents, and franchise operations manuals provide detailed guidance on how to implement the agreement. If a conflict arises, the franchise agreement usually takes precedence. The absence of a clause explicitly preventing the manual from conflicting with the franchise agreement could create ambiguity.
A prospective Beauty Bungalows franchisee should seek clarification from the franchisor regarding the process for updating the manuals and how conflicts between the manual and the franchise agreement are resolved. Understanding this hierarchy is crucial for the franchisee to ensure compliance and protect their rights under the franchise agreement. It would be prudent to consult with a franchise attorney to review the franchise agreement and clarify any potential risks associated with the modification of manuals.