When is the estimated initial investment for the first Beauty Bungalows business due?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Estimate (2 Units) | High Estimate (10 Units) | Method of Payment | When Due | To Whom Payment Is Made |
|---|---|---|---|---|---|
| Development Fee (1) | $89,900 | $314,900 | Lump sum | Upon signing ADA | Us |
| Estimated Initial Investment for First Business (2) | $886,750 | $1,907,000 | As incurred | As incurred | Us and third parties |
| TOTAL (3) | $976,650 | $2,221,900 |
| 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 initial investment for the first business is due at different times, depending on the type of expenditure. The development fee, which ranges from $89,900 to $314,900, is due upon signing the Area Development Agreement (ADA). The estimated initial investment for the first business, which ranges from $886,750 to $1,907,000, is due as incurred.
Specifically, the initial franchise fee of $49,900 is due upon signing the Franchise Agreement. Rent and security deposits are due upon signing the lease, while utilities are due prior to opening. Leasehold improvements, with a significant cost between $675,000 and $1,553,000, along with furniture, fixtures, and equipment, are also due prior to opening. Architecture and design fees are due as incurred prior to opening. Computer systems, insurance, signage, and pre-opening marketing expenses have varying payment schedules as well.
Business licenses and permits, professional fees, travel and living expenses for training, and additional funds are generally due as incurred. This means franchisees should expect to make payments at various stages, from signing agreements to prior to opening and during the initial months of operation. The timing of these payments will depend on agreements with landlords, vendors, suppliers, and other service providers.