Who determines the Multi-Area Marketing Programs that Beauty Bungalows franchisees must participate in?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ilize any advertising and marketing materials, without cost, developed by Franchisee and Franchisor will have the right to grant other franchisees the right to use such advertising and marketing materials.
- 9.03 Multi-Area Marketing Programs. Franchisee will participate, at Franchisee's sole cost and expense, in any Multi-Area Marketing Program(s) required by Franchisor, in Franchisor's sole determination. Multi-Area Marketing Programs may require Franchisee's cooperation and participation, including refraining from certain channels of marketing and distribution, and payment of commissions, referral fees, or other amounts to Franchisor, its affiliates, or third parties. Franchisee will report to Franchisor at such times and in such manner as Franchisor specifies, including by electronic means, any expenditures directly incurred by Franchisee at the direction of Franchisor in connection with a Multi- Area Marketing Program. Alternatively, at its sole option, Franchisor may require Franchisee to pay a fee to Franchisor, in an amount Franchisor determines at its sole option, in connection with a Multi-Area Marketing Program, which fee will be due and payable at the same time and in the same manner at the Royalty Fee. If Franchisor directly collects payments from Franchisee and other franchisees in connection with a Multi-Area Marketing Program, Franchisor will use such amounts in connection with such Multi-Area Marketing Program at Franchisor's sole determination, including to reimburse Franchisor's costs and expenses incurred in administering such Multi-Area Marketing Program. Franchisee acknowledges and agrees that a Multi-Area Marketing Program, or Franchisee's expenses or payments in connection with such Multi-Area Marketing Program, may or may not provide any benefit to Franchisee and may or may not be proportionate to expenses or payments incurred by Franchisee. Franchisor has no fiduciary duty with regard to any Multi-Area Marketing Program. Notwithstanding anything to the contrary in Section 9, Franchisee's combined total in a given calendar month of required expenses in connection with Multi-Area Marketing Programs and monthly contribution to the Brand Fund will not exceed two percent (2%) of Gross Revenue. Franchisor will not use any Multi- Area Marketing Program for advertising that is principally a solicitation for the sale of franchises, but Franchisor reserves the sole right to pursue any franchisee or business opportunity that may result from a Multi-Area Marketing Program. Franchisor reserves the right to include notations in any advertisement or marketing platform, including websites or mobile applications, that Franchises are available (or similar phrasing) along with contact forms or informational pages.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, franchisees must participate in Multi-Area Marketing Programs (MAM Programs) that are required by Beauty Bungalows. These programs are determined at Beauty Bungalows's sole discretion. MAM Programs are regional, national, or international marketing, advertising, or promotional programs designed to increase business. These programs may include marketing to multi-area customers, customer incentive programs, internet, social media, shows, events, directories, affinity marketing, vendor programs, and co-branding programs. Franchisees are responsible for the costs associated with participating in these programs.
Beauty Bungalows retains significant control over these marketing initiatives. Franchisees may be required to cooperate and participate in these programs, potentially needing to refrain from using certain marketing and distribution channels. They might also have to pay commissions, referral fees, or other amounts to Beauty Bungalows, its affiliates, or third parties. Franchisees must also report any direct expenditures incurred at the direction of Beauty Bungalows in connection with a MAM Program.
Alternatively, Beauty Bungalows has the option to require franchisees to pay a fee for participating in a MAM Program, with the fee amount determined at Beauty Bungalows's sole discretion. This fee is due at the same time and in the same manner as the Royalty Fee. If Beauty Bungalows directly collects payments from franchisees for a MAM Program, it will use these funds at its sole determination, including to cover its costs and expenses for administering the program. The FDD also states that all Multi-Area Marketing Programs are Trade Secrets of Beauty Bungalows.
It is important to note that the FDD states that a MAM Program may or may not provide any benefit to the franchisee and may or may not be proportionate to the expenses or payments incurred by the franchisee. However, the combined total of required expenses in connection with Multi-Area Marketing Programs and the monthly contribution to the Brand Fund will not exceed two percent (2%) of Gross Revenue in a given calendar month. Beauty Bungalows also states that it will not use any Multi- Area Marketing Program for advertising that is principally a solicitation for the sale of franchises, but Beauty Bungalows reserves the sole right to pursue any franchisee or business opportunity that may result from a Multi-Area Marketing Program.