Did the Company-Owned Outlet #1 of Beauty Bungalows pay Brand Fund Contributions during the Measurement Periods?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Estimated Franchise Operating Expenses Company-Owned Outlet #1 did not pay us Royalty Fees, Brand Fund Contributions, or Technology Fees during the Measurement Periods.
We have included a Royalty Fee, a Brand Fund Contribution, and a Technology Fee in the tables above as if Company-Owned Outlet #1 had paid these fees as required by the Franchise Agreement attached to this disclosure document.
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 #1, located in Huntington Beach, California, did not pay Brand Fund Contributions during the measurement periods. The measurement period referenced in the document is from January 1, 2024, to December 31, 2024.
Instead, Beauty Bungalows included a Brand Fund Contribution figure in their financial representation as if the Company-Owned Outlet #1 had paid these fees, as required by the franchise agreement. For the period of January 1, 2024 to December 31, 2024, the Brand Fund Contribution is listed as $5,350, representing 1% of gross revenue.
This distinction is important for prospective franchisees because the financial performance of Company-Owned Outlet #1 is presented with adjustments to reflect what expenses would look like under a franchise agreement. This allows potential franchisees to better understand the costs associated with operating a Beauty Bungalows franchise, even though the company-owned location's actual operating expenses were different. Franchisees should be aware that the actual expenses of the company-owned location may not be fully representative of the expenses a franchisee would incur.