Did Company-Owned Outlet #3 pay Brand Fund Contributions to Beauty Bungalows during the Measurement Period?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Estimated Franchise Operating Expenses Company-Owned Outlet #3 did not pay us Royalty Fees, Brand Fund Contributions, or Technology Fees during the Measurement Period. We have included a Royalty Fee, a Brand Fund Contribution, and a Technology Fee.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Company-Owned Outlet #3, which is located in Clovis, California, did not pay Brand Fund Contributions to Beauty Bungalows during the measurement period of January 1, 2024, to December 31, 2024.
Instead, Beauty Bungalows included an estimated Brand Fund Contribution in their financial performance representation for Company-Owned Outlet #3. This estimated contribution is included as if the outlet had paid the fees required by the franchise agreement. This approach allows prospective franchisees to see a more accurate representation of potential expenses they would incur as franchisees.
It's important to note that the financial performance representation in Item 19 is based on the historical performance of Beauty Bungalows' company-owned outlets. The document explicitly states that individual results may vary, and there is no assurance that a franchisee will achieve the same level of sales or profitability. Therefore, prospective franchisees should conduct their own independent investigation and due diligence to assess the potential financial performance of a Beauty Bungalows franchise.