When is the fee for a Beauty Bungalows Multi-Area Marketing Program due and payable?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor directly collects payments from Franchisee and other franchisees in connection with a Multi-Area Marketing Program, Franchisor will use such amounts in connection with such Multi-Area Marketing Program at Franchisor's sole determination, including to reimburse Franchisor's costs and expenses incurred in administering such Multi-Area Marketing Program.
Franchisee acknowledges and agrees that a Multi-Area Marketing Program, or Franchisee's expenses or payments in connection with such Multi-Area Marketing Program, may or may not provide any benefit to Franchisee and may or may not be proportionate to expenses or payments incurred by Franchisee.
Franchisor has no fiduciary duty with regard to any Multi-Area Marketing Program.
Notwithstanding anything to the contrary in Section 9, Franchisee's combined total in a given calendar month of required expenses in connection with Multi-Area Marketing Programs and monthly contribution to the Brand Fund will not exceed two percent (2%) of Gross Revenue.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Beauty Bungalows Franchise Disclosure Document, if Beauty Bungalows directly collects payments from franchisees for a Multi-Area Marketing (MAM) Program, it will use these funds for the MAM program. This includes covering Beauty Bungalows's costs for administering the program.
It's important to note that participation in a MAM Program may not guarantee any specific benefit to the franchisee, and the costs may not be proportionate to the benefits received. Beauty Bungalows clarifies that it has no fiduciary duty regarding these MAM Programs. The combined total of required expenses for MAM Programs and the monthly contribution to the Brand Fund will not exceed two percent of Gross Revenue in a given calendar month.
The FDD does not specify the exact due date for Multi-Area Marketing Program fees. It only states that if Beauty Bungalows collects payments for the MAM program, it will use those amounts for the program. A prospective franchisee should inquire with Beauty Bungalows about the specific payment schedule and procedures for Multi-Area Marketing Programs to fully understand the financial obligations and timing involved.