What is the estimated high cost for leasehold improvements for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| To Whom | |||||
|---|---|---|---|---|---|
| Low | High | Method Of | |||
| Type Of Expenditure(1) | Estimate | Estimate | Payment | When Due | Payment Is To Be Made |
| Initial Franchise Fee(2) | $49,900 | $49,900 | Lump sum | Upon signing Franchise Agreement | Us |
| Rent & Security Deposit3 | $20,000 | $60,000 | As determined by Landlord | Upon signing lease | Landlord |
| Utilities4 | $250 | $3,500 | As incurred | Prior to opening | Suppliers, Utilities, etc. |
| Leasehold | $675,000 | $1,553,000 | As incurred | Prior to | Vendors and |
| Improvements5 | opening | Suppliers | |||
| Furniture, Fixtures, and Equipment6 | $100,000 | $150,000 | As determined by Vendors | Prior to opening | Vendors and Suppliers |
| Architecture & Design7 | $25,000 | $25,000 | As Incurred | Prior to opening | Vendors and Suppliers |
| Computer Systems8 | $500 | $1,000 | As determined by Vendors | Prior to opening | Vendors and Suppliers |
| Insurance9 | $1,000 | $1,500 | As incurred | Prior to opening or as incurred | Insurance Company/ Agent |
| Signage10 | $10,000 | $20,000 | As incurred | As arranged with Vendors | Vendors |
| Office Expenses11 | $500 | $1,000 | As incurred | As incurred | Vendors and Suppliers |
| Pre-Opening and Grand Opening Marketing Spend12 | $22,000 | $24,000 | As incurred | Beginning 5 months prior to opening | Vendors and Suppliers |
| Business Licenses and | $4,000 | $10,000 | As incurred | As incurred | Government |
| Permits13 | agencies | ||||
| Professional Fees14 | $3,500 | $5,000 | As incurred | As incurred | Attorneys, accountants, and other professionals |
| Travel and Living Expenses to Training15 | $0 | $3,000 | As incurred | As incurred | Airlines, hotels, food vendors, and other merchants. |
| Additional Funds | $25,000 | $50,000 | As incurred | As incurred | Suppliers, |
| (3 Months)16 | Utilities | ||||
| TOTALS17 | $936,650 | $1,956,900 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the estimated high cost for leasehold improvements is $1,553,000. The low estimate for leasehold improvements is $675,000. These costs are typically paid prior to opening to vendors and suppliers.
The FDD notes that these numbers cover the interior build out of a location and are based on Beauty Bungalows' collective experience in the salon business and combined years in the real estate industry. The estimate is based on the build out of one location. If a franchisee purchases multiple franchises at one time, they will incur additional expenses for each location purchased.
Your actual costs will depend on factors such as the franchise location, the size of the franchise, the condition of the premises being remodeled, national and local economic factors, the local costs of materials and labor, and the amount of tenant improvement allowances that you are able to obtain, if any. Franchisees should investigate all of these costs in the area where they wish to establish a Beauty Bungalows franchise.