What is the Development Fee for Beauty Bungalows based on?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of this Agreement, you must pay us a development fee in the amount specified in Appendix A (the "Development Fee"), which is based on the initial franchise fee you must pay for each Franchised Business that you develop (the "Franchise Fee", which is also specified in Appendix A). The Development Fee will be credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Franchised Business that you develop pursuant to this Agreement, including the Initial Franchise
Agreement. The Development Fee is fully earned by us when we and you sign this Agreement and is nonrefundable, even if you do not comply with the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Development Fee is based on the initial franchise fee that the franchisee must pay for each franchised business they develop. This initial franchise fee is referred to as the "Franchise Fee" in the document and its amount is specified in Appendix A of the Area Development Agreement.
The Development Fee is paid upon the execution of the Area Development Agreement. The FDD states that the Development Fee will be credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Beauty Bungalows franchised business that the franchisee develops under the Area Development Agreement, including the Initial Franchise Agreement.
It is important to note that the Development Fee is fully earned by Beauty Bungalows Franchising, LLC once the Area Development Agreement is signed by both parties. The Development Fee is nonrefundable, even if the franchisee fails to comply with the Development Schedule outlined in Appendix A. Prospective franchisees should carefully consider the implications of this nonrefundable fee before signing the agreement.