Did Beauty Bungalows or its affiliates earn revenue from required purchases in the 2024 fiscal year?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
During the 2024 fiscal year, neither we nor our affiliates earned any revenue, rebates, or other material considerations from required purchases or leases in the 2024 fiscal year.
We estimate that your purchases from designated or approved suppliers or in accordance with our specifications will represent approximately between 60% and 85% of your total purchases in connection with the establishment of your business and will represent from 25% to 50% of your ongoing expenses.
We and our affiliates may receive rebates from suppliers and vendors based on your purchases of products and services, promotional allowances, volume discounts and other programs. As we have just begun franchising, we and our affiliates have not received any rebates from suppliers or vendors based upon franchisee purchases of products or services. None of our owners, directors, or principal officers owns any interest in any designated or approved supplier. There is one designated supplier for certain items of furniture, fixtures, and equipment that you will use in the build-out of your Beauty Bungalows franchise. We are entitled to receive a rebate equal to 5% of the amount a franchisee purchases for items sourced through this supplier. None of our owners, directors or affiliates owns any interest in this designated supplier. In the 2024 fiscal year we did not receive any amounts from our suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, neither Beauty Bungalows nor its affiliates earned any revenue, rebates, or other material considerations from required purchases or leases during the 2024 fiscal year. This indicates that franchisees were not obligated to make purchases that directly benefited Beauty Bungalows financially during that period. However, Beauty Bungalows estimates that purchases from designated or approved suppliers or in accordance with their specifications will represent approximately 60% to 85% of a franchisee's total purchases when establishing their business. Additionally, ongoing expenses are estimated to be 25% to 50%.
While Beauty Bungalows did not receive direct revenue from required purchases in 2024, they do have the potential to receive rebates from suppliers and vendors based on franchisee purchases of products and services, promotional allowances, volume discounts, and other programs. As Beauty Bungalows has just begun franchising, they and their affiliates have not received any rebates from suppliers or vendors based upon franchisee purchases of products or services. There is one designated supplier for certain items of furniture, fixtures, and equipment that franchisees will use in the build-out of their Beauty Bungalows franchise, and Beauty Bungalows is entitled to receive a rebate equal to 5% of the amount a franchisee purchases for items sourced through this supplier. However, in the 2024 fiscal year, Beauty Bungalows did not receive any amounts from its suppliers.
Prospective franchisees should be aware that while Beauty Bungalows did not receive revenue from required purchases in 2024, the franchise system relies on approved suppliers for a significant portion of initial and ongoing expenses. The ability for Beauty Bungalows to receive rebates from these suppliers in the future could influence their choice of vendors and potentially impact the costs for franchisees. It is important for potential franchisees to evaluate the approved supplier list and understand the pricing and quality of the required products and services to assess the overall financial implications.