What is the estimated low cost for leasehold improvements for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
AL INVESTMENT FRANCHISE AGREEMENT A.
| 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 | ||||
| - 1. Type of Expenditure: The amounts provided in this Item 7 include costs you will incur to start your business. |
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 low cost for leasehold improvements is $675,000. Leasehold improvements cover the interior build-out of the location. This figure is based on Beauty Bungalows's experience in the salon business and real estate industry, specifically from building out one location.
Prospective franchisees should note that this cost can vary significantly. The FDD indicates that if a franchisee purchases multiple franchises simultaneously, they will incur additional expenses for each location. The actual costs depend on factors such as the franchise location, size, condition of the premises, economic factors, and the ability to obtain tenant improvement allowances from the landlord.
It's important to investigate all costs in the specific area where the franchisee wishes to establish a Beauty Bungalows franchise. The franchisor notes that if a tenant improvement allowance is negotiated, the landlord may require proof of payment for the leasehold improvements before reimbursement. Some landlords may also offer the allowance as reduced rent over the lease term rather than a lump sum.