In what currency must all payments to Beauty Bungalows be made?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
I (or We if there are joint owners of the account referenced later in this agreement) authorize and request Beauty Bungalows Franchising, LLC (the "Company") to obtain payment for all royalty amounts I (we) owe to the Company pursuant to the Franchise Agreement between the Company and me (us), as these amounts become due by initiating a payment entry to my (our) account. The account number, name of financial institution, payment amount, and date on or immediately after which payment should be deducted from the account are identified below. In addition, I (we) authorize and request the financial institution, now referred to as the Bank, to accept the payment entries presented to the Bank and to deduct them from my (our) account without responsibility for the correctness of these payments.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Beauty Bungalows Franchise Disclosure Document, the franchise agreement includes an authorization agreement for preauthorized payment service. This agreement authorizes Beauty Bungalows Franchising, LLC to obtain payment for all royalty amounts owed pursuant to the Franchise Agreement by initiating a payment entry to the franchisee's account. The payment amount and date on or immediately after which payment should be deducted from the account are identified in the authorization agreement.
While the FDD excerpt specifies the method of payment (preauthorized payment service), it does not explicitly state the currency in which these payments must be made. However, the initial franchise fee is listed as $49,900, and the technology fee is listed as $150 per month, implying that U.S. dollars are the expected currency for transactions with Beauty Bungalows.
A prospective Beauty Bungalows franchisee should confirm with the franchisor whether all payments must be made in U.S. dollars to avoid any potential issues related to currency conversion or payment processing.