Are company-owned Beauty Bungalows required to contribute to the Brand Fund?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, all company-owned and affiliate-owned Beauty Bungalows locations are required to contribute to the Brand Fund on the same basis as franchisees. This means that company-owned locations are not exempt from contributing to the fund, which is used for marketing and advertising efforts to benefit the entire Beauty Bungalows system.

The Brand Fund requires franchisees to contribute a designated amount, currently 1% of Gross Revenue, but this contribution will not exceed 2% of Gross Revenue. The combined total of contributions to the Fund and any required expenditures in connection with a Multi-Area Marketing (MAM) Program will not exceed 2% of Gross Revenue in any given month. These contributions are due at the same time and in the same manner as the Royalty Fee.

Beauty Bungalows has the discretion in how the Brand Fund contributions are spent and does not have a fiduciary duty to franchisees regarding the Fund. While the goal is to maximize public recognition and increase business for all salons, there's no guarantee that any individual franchisee will directly benefit from the advertising or marketing efforts. An unaudited annual financial statement of the Fund will be prepared and available to franchisees upon written request, providing some transparency into how the funds are managed and spent.