Who administers the Brand Fund for Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund will be administered by Beauty Bungalows' marketing and accounting staff. All company-owned and affiliate-owned Beauty Bungalows will be required to contribute to the Fund on the same basis as franchisees. We will spend the contributions to the Fund in our discretion. We have no fiduciary duty to you regarding the Fund or your contributions to the Fund. We have no obligation to make expenditures for franchisees in their area or territory or that are equivalent or proportionate to any individual franchisee's contribution to the Fund or ensure that any particular franchisee benefits directly or pro rata from the placement of advertising or deployment of marketing purchased with money from the Fund. If the Fund operates at a deficit or require additional funds at any time, we reserve the right to loan such funds to the Fund on any terms we determine. We are not required to use all contributions collected for the Fund in a given year, and we may retain the amount to spend on the Fund in future years. An unaudited annual financial statement of the Fund will be prepared within 120 days of the close of our fiscal year and will be available to any Franchisee upon written request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Brand Fund is administered by Beauty Bungalows' marketing and accounting staff. The purpose of this fund is to enhance the brand's public recognition, increase business, and improve the overall success of all salons operating under the Beauty Bungalows system.
Beauty Bungalows has the discretion to spend the contributions to the fund. The FDD states that Beauty Bungalows has no fiduciary duty to franchisees regarding the fund or their contributions, and there is no obligation to ensure that any particular franchisee benefits directly or proportionally from the advertising or marketing purchased with money from the fund.
An unaudited annual financial statement of the Brand Fund will be prepared within 120 days of the close of Beauty Bungalows' fiscal year and will be available to any franchisee upon written request. Franchisees are required to contribute to the Brand Fund in an amount designated by Beauty Bungalows, which is currently 1% of Gross Revenue, but will not exceed 2% of Gross Revenue.