What is the cumulative development fee for 5 Beauty Bungalows franchised businesses?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ows:
Development Fee Chart
| Number of Franchised Businesses | Initial Franchise Fee | Cumulative Development Fee |
|---|---|---|
| 1 | $49,900 | $49,900 |
| 2 | $40,000 | $89,900 |
| 3 | $35,000 | $124,900 |
| 4 | $30,000 | $154,900 |
| 5 | $30,000 | $184,900 |
| 6 | $30,000 | $214,900 |
| 7 | $25,000 | $239,900 |
| 8 | $25,000 | $264,900 |
| 9 | $25,000 | $289,90 |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the cumulative development fee for 5 franchised businesses is $184,900. This fee is part of the Area Development Agreement (ADA) option, where a franchisee commits to opening multiple Beauty Bungalows locations.
The cumulative development fee increases with each additional franchise purchased under the ADA. For example, the cumulative development fee for 2 franchises is $89,900, for 3 franchises it is $124,900, and for 4 franchises it is $154,900. This fee structure incentivizes franchisees to commit to a larger number of units, as the initial franchise fee decreases as more franchises are added to the agreement.
It is important to note that these development fees are non-refundable. The franchisee must also sign a franchise agreement for the first unit concurrently with the ADA. This financial commitment underscores the importance of careful planning and due diligence before entering into a multi-unit development agreement with Beauty Bungalows.