What amount was spent on 'Franchise consulting' as an operating expense for Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
nd members' equity | $ 231,510 | $ 124,233 |
Beauty Bungalows Franchising, LLC STATEMENT OF OPERATIONS For the Year Ended December 31, 2023 and 2022
| INCOME Franchise income | $ _ | $ | - |
|---|---|---|---|
| OPERATING EXPENSES | |||
| Legal and other professional fees | 47,102 | 12,125 | |
| Office supplies & software | 19,274 | - | |
| Advertising & marketing | 10,613 | - | |
| Rent | 6,500 | - | |
| Travel | 1,538 | - | |
| Registrations | 201 | - | |
| Bank charge |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, franchise consulting expenses are detailed in the Statements of Operations. In 2023, Beauty Bungalows spent $56,178 on franchise consulting. There is no listing for franchise consulting expenses in 2024.
This figure is important for prospective franchisees as it provides insight into the franchisor's expenditures on expert advice and support related to franchising activities. These activities could include refining the franchise model, improving franchisee recruitment strategies, or ensuring compliance with franchise regulations.
Understanding the franchisor's investment in franchise consulting can help a franchisee assess the level of support and expertise Beauty Bungalows is willing to invest in its franchise system. A significant investment in consulting may indicate a commitment to improving and expanding the franchise network, while a lower investment might suggest a more limited focus or reliance on internal resources.