Within my Beauty Bungalows Development Area, will I face competition from outlets that Beauty Bungalows or its affiliates own?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, if you execute an Area Development Agreement (ADA), you may face competition within your Development Area from outlets that Beauty Bungalows or its affiliates own. Additionally, competition may arise from other franchisees, other channels of distribution, or competitive brands that Beauty Bungalows or its affiliates control. The Development Area is a geographic area assigned to you where you have the right and obligation to develop and establish a pre-determined number of franchised locations, according to a set Development Schedule. The Development Area's size can vary, ranging from a portion of a city to a multi-county or single-state area. The size is determined by the number of franchised locations you are granted the right to develop and the demographics of the area where you will be opening these locations.

The FDD also states that Beauty Bungalows and its affiliates may sell products under the Marks within and outside your Protected Territory through alternative distribution channels such as the Internet, catalog sales, telemarketing, or other direct marketing sales. Beauty Bungalows and its affiliates can use alternative distribution channels to make sales within your Protected Territory of products or services under trademarks different from the Marks you will use under the Franchise Agreement.

While the Protected Territory granted to you is exclusive, Beauty Bungalows reserves the right to operate or offer products and services through alternative channels of distribution in your Protected Territory. This means you may face competition from Beauty Bungalows, its affiliates, other franchisees, or others inside and outside of your Protected Territory. Beauty Bungalows also reserves the right to use, license, and franchise the use of trademarks or service marks that are not the same or similar to the Marks, whether in alternative channels of distribution or at any location including within the Protected Territory, in association with operations that are the same as, similar to, or different than Beauty Bungalows Franchises.

Beauty Bungalows also retains the right to own, franchise, or operate Beauty Bungalows Franchises at any location outside of your Protected Territory, regardless of proximity to your site. They can also use the Marks and the System to sell goods or services similar to yours through alternative distribution channels within or outside your Protected Territory, including television, mail order, catalog sales, wholesale sales to unrelated franchises, or over the Internet. Beauty Bungalows exclusively reserves the Internet as a distribution channel, preventing you from independently marketing online or conducting e-commerce. They also have the right to purchase or merge with any business, including competitors, and implement multi-area marketing programs that may solicit or sell to customers anywhere.