What is an ADA in the context of a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
for Multi-Unit Development**
If you choose and we agree, you may purchase multiple Beauty Bungalows Franchises under an ADA. You may purchase multiple units in a group of two (2) or more units with our prior approval (two (2) is the minimum required). You will be required to sign our ADA and agree to open your additional Beauty Bungalows Franchises upon a set schedule. The Development Fee is deemed fully earned upon receipt and there are no refunds of the Development Fee under any circumstances. If you execute an ADA, you will be required to execute a Franchise Agreement for the first unit in your ADA concurrently with your execution of the ADA.
The Development Fee you must pay to us depends upon the number of Beauty Bungalows Franchises we grant you the right to develop in your Development Area in accordance with the Development Schedule set forth in the ADA, and is calculated as follows:
Development Fee Chart
| Number of Franchised Businesses | Initial Franchise Fee | Cumulative Development Fee |
|---|---|---|
| 1 | $49,900 | $49,900 |
| 2 | $40,000 | $89,900 |
| 3 | $35,000 | $124,900 |
| 4 | $30,000 | $154,900 |
| 5 | $30,000 | $184,900 |
| 6 | $30,000 | $214,900 |
| 7 | $25,000 | $239,900 |
| 8 | $25,000 | $264,900 |
| 9 | $25,000 | $289,900 |
| 10 | $25,000 | $314,900 |
You must enter into our then-current form of franchise agreement for each Beauty Bungalows Franchise you wish to open under your ADA, but you will not pay any additional Initial Franchise Fee at the time you execute each of these franchise agreements. You must execute our current form of Franchise Agreement that will govern the first Beauty Bungalows Franchise at that same time you execute your ADA.
[Remainder of page intentionally left blank.]
**ITEM 6.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, an ADA refers to an Area Development Agreement. This agreement allows a franchisee to purchase the rights to open multiple Beauty Bungalows franchises, specifically a group of two or more units, subject to Beauty Bungalows's approval. Franchisees entering into an ADA must commit to opening these additional locations according to a predetermined schedule outlined in the agreement.
When signing an ADA, the franchisee also signs a Franchise Agreement for their first Beauty Bungalows unit. While franchisees don't pay an additional initial franchise fee for subsequent locations under the ADA, they do pay a Development Fee. This Development Fee varies based on the number of franchises the franchisee is granted the right to develop within their designated Development Area, as detailed in the Development Schedule of the ADA.
The Development Fee structure illustrates how the initial franchise fee decreases with each additional franchise purchased under the ADA. For example, the initial franchise fee for a single business is $49,900, while purchasing two franchises brings the initial fee down to $40,000 per franchise. This tiered fee structure incentivizes multi-unit development, potentially offering a more cost-effective expansion strategy for franchisees looking to establish a larger Beauty Bungalows presence.