What were the consulting costs for Beauty Bungalows in 2024?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
rida | 2 | 2 | 0 | | Totals | 7 | 13 | 1 |
Beauty Bungalows Franchising, LLC STATEMENTS OF OPERATIONS For the years ended December 31, 2024 and 2023
| 2024 | 2023 | |||
|---|---|---|---|---|
| Operating revenues: | ||||
| Revenue | $ | 46,800 | $ | - |
| Technology fee | 200 | - | ||
| Total operating revenues | 47,000 | - | ||
| Operating expenses: | ||||
| Consulting costs | 182,185 | - | ||
| Advertising & marketing | 21,514 | 10,613 | ||
| Legal fees | 18,433 | 47,102 | ||
| Software | 13,464 | - | ||
| Referral fee | 12,626 | - | ||
| Professional fees | 12,195 | - | ||
| Travel | 9,133 | 1,538 | ||
| Insurance | 7,722 | - | ||
| Supplies | 5,644 | - | ||
| Rent | 3,000 | 6,500 | ||
| Meals & entertainment | 2,128 | _ | ||
| Office supplies | 1,362 | 19,274 | ||
| Other expenses | 895 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the company incurred $182,185 in consulting costs during the year 2024. This figure is part of the operating expenses detailed in the financial statements. In contrast, Beauty Bungalows had no consulting costs in 2023.
For a prospective franchisee, this indicates that Beauty Bungalows significantly increased its reliance on external consultants in 2024 compared to the previous year. This could be due to various reasons, such as seeking expertise in specific areas of the business, preparing for expansion, or addressing operational challenges. Understanding the nature of these consulting services and their impact on the business is crucial for potential franchisees.
It's important for a potential Beauty Bungalows franchisee to investigate the reasons behind these consulting costs. They should inquire about the specific services provided, the consultants involved, and the expected return on investment from these expenditures. This information can help assess the financial stability and strategic direction of the Beauty Bungalows franchise system. Furthermore, understanding the franchisor's approach to managing expenses and investing in resources is essential for making an informed decision about joining the franchise.