What expenses are NOT included in the EBITDA (if franchised) calculation for Beauty Bungalows?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the EBITDA (if franchised) calculation excludes specific expenses. The document states that expenses related to taxes, interest on debt, depreciation, and amortization costs are not included in the EBITDA calculation. The EBITDA figure is derived by subtracting the Total Key Operating Expenses and Estimated Franchise Operating Expenses from the Gross Revenue for each measurement period.

This means that when evaluating the financial performance of a Beauty Bungalows location based on the provided EBITDA figures, prospective franchisees should be aware that these figures do not reflect the impact of taxes, debt-related interest, or non-cash expenses like depreciation and amortization. These exclusions can significantly affect the overall profitability and cash flow of the business.

For a comprehensive understanding of the financial implications, franchisees should independently investigate these excluded expenses and consider their potential impact on their investment. This is a common practice in franchising, as EBITDA provides a baseline operational profitability metric, but doesn't represent the complete financial picture. Reviewing the full profit and loss statements and understanding these exclusions is crucial for making informed decisions.