Did the Company-Owned Outlet #1 of Beauty Bungalows pay Technology Fees 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 Technology Fees during the measurement periods. The measurement period was from January 1, 2024, to December 31, 2024.
However, the FDD includes an estimated Technology Fee of $1,800 in the financial tables as if the Company-Owned Outlet #1 had paid it. This is done to provide prospective franchisees with a clearer picture of the expenses they would likely incur if they operated a Beauty Bungalows franchise.
This distinction is important for potential franchisees to understand because the financial performance of company-owned outlets is presented with adjustments to reflect what expenses would be under a franchise agreement. Therefore, it's crucial to carefully review the notes and footnotes in Item 19 to understand which figures represent actual costs versus estimated costs.