Can Beauty Bungalows unilaterally modify the franchise agreement?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
nd the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
Beauty Bungalows Franchising, LLC 257 Wake Forest Road Costa Mesa, CA 92626 Franchise@BeautyBungalows.com
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- Company will have the right, without being guilty of trespass or any other crime or tort, to enter the Premises at any time or from time to time (i) to make any modification or alteration it considers necessary to protect the Beauty Bungalows system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, or (iii) to remove the distinctive elements of the Beauty Bungalows trade dress upon the Franchise Agreement's expiration or termination. Neither Company nor Landlord will be responsible to Franchisee for any damages Franchisee might sustain as a result of action Company takes in accordance with this provision. Company will repair or reimburse Landlord for the cost of any damage to the Premises' walls, floor or ceiling that result from Company's removal of trade dress items and other property from the Premises.
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- Franchisee will be permitted to assign the Lease to Company or its designee upon the expiration or termination of the Franchise Agreement. Landlord consents to such an assignment and agrees not to impose any assignment fee or similar change, or to increase or accelerate rent under the Lease, in connection with such an assignment.
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Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Beauty Bungalows Franchise Disclosure Document, Beauty Bungalows has the right to modify certain aspects of the franchise system. Specifically, Beauty Bungalows can make modifications or alterations to the franchisee's premises if it considers it necessary to protect the Beauty Bungalows system and marks. This includes entering the premises to cure any default under the Franchise Agreement or the lease, or to remove distinctive elements of the Beauty Bungalows trade dress upon the agreement's expiration or termination.
Beauty Bungalows also reserves the right to add, modify, or discontinue any marks used under the system. Additionally, Beauty Bungalows can increase the Technology Fee, currently at $150 per month, by providing written notice to the franchisee at least 30 days before implementing the new fee amount.
However, modifications to the lease agreement require more than just unilateral action by Beauty Bungalows. The landlord and franchisee cannot amend or modify the lease in any way that could materially affect the provisions or requirements of the Lease Rider without Beauty Bungalows' prior written consent. This indicates that while Beauty Bungalows has some control over lease modifications, it requires cooperation from the landlord and franchisee.
Prospective franchisees should be aware that Beauty Bungalows retains rights to modify aspects of the franchise, particularly concerning the premises, marks, and technology fees. Franchisees should carefully consider the implications of these modification rights and discuss any concerns with Beauty Bungalows before entering into a franchise agreement.