When is the fee for Beauty Bungalows' Multi-Area Marketing Programs due?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate, at your sole cost and expense, in any national, international, regional, and/or multiarea marketing programs we require from time to time (collectively, "Multi-Area Marketing Program(s)" or "MAM Program(s)"). MAM Programs will be administered and/or directed by our marketing and accounting staff. In any given month, your combined expenditures in connection with a MAM Program and required monthly contribution to the Brand Fund (discussed below) will not exceed 2% of your Gross Revenue. MAM Programs may require your cooperation and participation, including refraining from certain channels of marketing and distribution, and payment of commissions, referral fees, or other amounts to us, our affiliates, or third parties. We reserve the right to require you to pay a fee to us, in an amount we determine at our sole option subject only to the combined monthly cap noted above, in connection with MAM Programs. Any such fee will be due at the same time and manner as the Royalty Fee. We will use and direct amounts collected in connection with a MAM Program in our sole determination and we may use such amounts to reimburse our costs and expenses incurred in administering or directing such MAM Program. We have no fiduciary duty to you regarding any MAM Program or your expenditures or payments in connection with any MAM Program. We have no obligation to ensure that any particular franchisee benefits directly or pro rata from any MAM Programs or that any expenditures related to MAM Programs are equivalent or proportionate to any individual franchisee's payments or expenditures related to such MAM Programs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, franchisees must participate in Multi-Area Marketing Programs (MAM Programs) at their own cost. The amount of the fee for these programs is determined by Beauty Bungalows, but the combined expenditures for the MAM Program and the monthly Brand Fund contribution will not exceed 2% of the franchisee's Gross Revenue in any given month.
The fee for the Beauty Bungalows MAM Program is due at the same time and in the same manner as the Royalty Fee. This means franchisees should expect to remit payment for the MAM Program fee on the same schedule they pay their royalties.
Beauty Bungalows retains significant control over the MAM Programs, including how the funds are used. The franchisor states that they have no fiduciary duty to franchisees regarding these programs and are not obligated to ensure that each franchisee benefits proportionally to their payments. Prospective franchisees should consider these factors and the potential costs when evaluating the Beauty Bungalows franchise opportunity.