Is the Development Fee for Beauty Bungalows refundable?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
for Multi-Unit Development**
If you choose and we agree, you may purchase multiple Beauty Bungalows Franchises under an ADA. You may purchase multiple units in a group of two (2) or more units with our prior approval (two (2) is the minimum required). You will be required to sign our ADA and agree to open your additional Beauty Bungalows Franchises upon a set schedule. The Development Fee is deemed fully earned upon receipt and there are no refunds of the Development Fee under any circumstances. If you execute an ADA, you will be required to execute a Franchise Agreement for the first unit in your ADA concurrently with 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 |
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 is not refundable under any circumstances. The document states that the Development Fee is deemed fully earned upon receipt. This fee is required when a franchisee purchases the rights to develop multiple Beauty Bungalows franchises under an Area Development Agreement (ADA). The minimum number of units that can be purchased in a group is two.
The Development Fee amount varies depending on the number of franchises the franchisee commits to developing within a specific territory and timeline, as outlined in the ADA. For instance, the cumulative development fee for 2 franchised businesses is $89,900, for 5 it is $184,900, and for 10 it totals $314,900. These fees cover the right to develop the specified number of Beauty Bungalows locations; franchisees will not pay any additional Initial Franchise Fee at the time they execute each franchise agreement after the first one.
Prospective franchisees should carefully consider their development plans and financial capabilities before entering into an ADA with Beauty Bungalows, as the Development Fee is non-refundable. This is a fairly standard practice in franchising, as the fee compensates the franchisor for granting exclusive development rights and investing resources in supporting the area developer. Franchisees should ensure they fully understand the terms and conditions of the ADA, including the development schedule and any performance requirements, before committing to the agreement.