What is the estimated total of key operating expenses for Beauty Bungalows, excluding franchise-related expenses, according to the financial performance representation?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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Part I - Company-Owned Outlet #1 (15 Suites | ~3,000 sqft.)1
| January 1, 2024 to December 31, 2024 | |
|---|---|
| GROSS REVENUE2 | $293,768 |
| Key Operating Expenses | |
| Advertising | $412 |
| Cleaning Supplies | $609 |
| Insurance | $735 |
| Janitorial | $7,280 |
| Legal/ licenses | $284 |
| Manager3 | $0 |
| Rent/NNN/CAMS Expense | $146,654 |
| Repairs & Maintenance | $7,920 |
| Utilities | $11,429 |
| Bank Fees | $238 |
| Total Key Operating Expenses | $175,561 |
| Estimated Franchise Operating Expenses4 | |
| Royalty Fees (5.5%) | $16,157 |
| Brand Fund Contribution (1%) | $2,938 |
| Technology Fee | $1,800 |
| Total Franchise Expenses | $20,895 |
| EBITDA (if franchised)5 | $97,312 |
| EBITDA (if franchised) Margin6 | 33% |
| Suite Profiles8 |
|---|
| Total Suites: 15 |
| Suite Size Range: 111 - |
| 185 sq |
| ft. |
| Suite Rent |
| Range: $350 - |
| $490 |
| per week |
Notes to Part I:
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- Company Owned Outlet #1 Company-Owned Outlet #1 operates in Huntington Beach, California and has been open since March 2017. It is comprised of 15 individual suites of varying sizes. We estimate that your Beauty Bungalows Franchise location will typically be between 5,500 to 8,000 square feet and will contain 25-40 individual suites of varying sizes.
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- Gross Revenue "Gross Revenue" means all amounts collected from suite rental income generated at Company-Owned Outlet #1 during each Measurement Period. Gross Revenue does not include any revenue collected in the form of taxes collected and then paid to applicable government agencies.
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- Manager Compensation Company-Owned Outlet #1 was owner-operated and did not employ a dedicated Manager.
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- Estimated Franchise Operating Expenses Company-Owned Outlet #1 did not pay us Royalty Fees, Brand Fund Contributions, or Technology Fees during the Measurement Periods. We have included a Royalty Fee, a Brand Fund Contribution, and a Technology Fee in the tables above as if Company-Owned Outlet #1 had paid these fees as required by the Franchise Agreement attached to this disclosure document. We did not include an adjustment for the required local advertising amount because we do not require you to spend a minimum amount once a location is rented at or above 75% capacity.
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- EBITDA (if franchised) – "EBITDA (if franchised)" does not include expenses related to taxes, interest on debt, depreciation, or amortization costs. The numbers included in this figure are equal to the Gross Revenue, minus the Total Key Operating Expenses and Estimated Franchise Operating Expenses, for each Measurement Period.
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- EBITDA (if franchised) Margin EBITDA (if franchised) Margin is calculated by dividing the EBITDA (if franchised) figure by the Gross Revenue figure for a given Measurement Period.
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- Suite Occupancy Rate The Suite Occupancy Rate measures the suites at Company-Owned Outlet #1 were under contract for rent during the entirety of the Measurement Period.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Item 19 provides a financial performance representation based on the historical results of three company-owned outlets. The document details key operating expenses for each outlet during the period from January 1, 2024, to December 31, 2024.
For Company-Owned Outlet #1, the total key operating expenses amounted to $175,561. These expenses include advertising ($412), cleaning supplies ($609), insurance ($735), janitorial ($7,280), legal/licenses ($284), rent/NNN/CAMS expense ($146,654), repairs & maintenance ($7,920), utilities ($11,429), and bank fees ($238).
Company-Owned Outlet #2 had total key operating expenses of $181,918. These expenses consist of advertising ($25,300), cleaning supplies ($1,157), insurance ($4,173), janitorial ($14,040), legal/licenses ($590), manager ($16,400), rent/NNN/CAMS expense ($97,319), repairs & maintenance ($5,325), utilities ($16,637), and bank fees ($977).
Company-Owned Outlet #3 reported total key operating expenses of $310,987, including advertising ($643), cleaning supplies ($691), insurance ($8,703), janitorial ($21,900), legal/licenses ($109), rent/NNN/CAMS expense ($251,715), repairs & maintenance ($6,500), utilities ($19,406), and bank fees ($1,320). It is important to note that these figures do not include franchise-related expenses such as royalty fees, brand fund contributions, or technology fees, which are listed separately as 'Estimated Franchise Operating Expenses'.