Did Company-Owned Outlet #3 pay Technology Fees 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 operates in Clovis, California, did not pay Technology Fees to Beauty Bungalows during the measurement period of January 1, 2024, to December 31, 2024. However, the document includes an estimated Technology Fee of $1,800 in the financial performance representation as if the outlet were a franchise.
This means that while the company-owned outlet was not subject to this fee, a franchisee would be. The inclusion of this estimated fee allows prospective franchisees to see how this expense would impact the outlet's financial performance.
It is important to note that this is just one component of the estimated franchise operating expenses. The FDD also includes estimated Royalty Fees and Brand Fund Contributions, which franchisees will be required to pay. Reviewing all these estimated fees will help a potential franchisee understand the total costs associated with operating a Beauty Bungalows franchise.