What does the Development Fee for Beauty Bungalows depend on?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
h your execution of the ADA.
The Development Fee you must pay to us depends upon the number of Beauty Bungalows Franchises we grant you the right to develop in your Development Area in accordance with the Development Schedule set forth in the ADA, and is calculated as follows:
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 | $289,900 |
| 10 | $25,000 | $314,900 |
You must enter into our then-current form of franchise agreem
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the Development Fee for franchisees who choose to purchase multiple franchises under an Area Development Agreement (ADA) depends on the number of Beauty Bungalows franchises the franchisor grants the franchisee the right to develop in their Development Area, as outlined in the Development Schedule within the ADA. The minimum number of units that can be purchased in a group is two.
The Development Fee is paid in addition to the Initial Franchise Fee for the first unit. The FDD outlines a tiered fee structure. For example, if a franchisee purchases the rights to develop two Beauty Bungalows franchises, the cumulative development fee is $89,900. This includes an initial franchise fee of $40,000 for the second franchise, in addition to the $49,900 for the first franchise.
The Development Fee is considered fully earned upon receipt, and is non-refundable under any circumstances. Franchisees will not pay any additional Initial Franchise Fee at the time they execute each franchise agreement after the first, but must enter into Beauty Bungalows' then-current form of franchise agreement for each franchise they wish to open under their ADA.