Can the Beauty Bungalows Brand Fund be used for public relations activities or events?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund or any MAM Program(s) may be used to satisfy any and all costs of maintaining, administering, directing and preparing advertising or marketing, including, without limitation, (a) the costs or preparing and conducting marketing campaigns intended to enhance the brand, including marketing, advertising, or promotions that are directed at consumers, salon professionals or general business professionals such as lenders to franchisees, landlords and beauty industry participants, (b) digital marketing, (c) social media marketing, (d) in-store and point of purchase marketing, (e) public relations activities or events, intended to enhance the brand, that are directed at consumers, salon professionals or general business professionals such as lenders to franchisees, landlords and beauty industry participants, (f) employing or engaging advertising and/or marketing personnel, contractors or agencies, (g) development, enhancement and maintenance of Beauty Bungalows- sponsored or promoted websites and mobile applications, (h) costs incurred by Beauty Bungalows for personnel and other departmental costs for marketing purposes, (i) Beauty Bungalows programs and differentiators relating to education and support, (j) technologies and platforms used by Beauty Bungalowsfranchisees and Customers, and (k) other internal or administrative costs, expenses, or overhead caused by or related to the collecting, administering and managing the Fund or any MAM Program(s) or creating, preparing, distributing, monitoring and managing marketing related marketing or advertising programs or campaigns, websites and mobile applications.
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 can be used for public relations activities or events. The Brand Fund is intended to maximize public recognition and acceptance of the Beauty Bungalows brand and enhance the collective success of all salons operating under the system.
The FDD specifies that the Brand Fund may be used for various marketing and advertising programs, including public relations activities or events directed at consumers, salon professionals, or general business professionals such as lenders to franchisees, landlords, and beauty industry participants. This indicates that Beauty Bungalows has the discretion to use the Brand Fund for public relations and events to enhance the brand's image and recognition.
Beauty Bungalows maintains control over the Brand Fund's administration and how the contributions are spent. While franchisees contribute to the fund, Beauty Bungalows does not have a fiduciary duty to franchisees regarding the fund or their contributions. This means that Beauty Bungalows has the flexibility to allocate the funds as it sees fit to benefit the brand, including using it for public relations activities and events. Franchisees should be aware that they may not directly benefit from specific advertising or marketing efforts funded by the Brand Fund in their particular area or territory.