Are the fees in Item 6 of the Beauty Bungalows FDD uniformly imposed?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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Notes to Item 6:
(1) We or our affiliates impose all the fees in this table, you pay them to us or our affiliate, and we (or our affiliate) do not refund them. All fees in this Item 6 are uniformly imposed unless otherwise noted.
- (2) "Gross Revenue" means the total of all receipts derived from gross rental receipts and other revenue, whether the receipts are evidenced by cash, credit, checks, services, property, or other means of exchange. Gross Revenue excludes only sales tax receipts that you must by law collect from customers and that you actually pay to the government, promotional or discount coupons to the extent that Franchisee realizes no revenue, and employee receipt of services, if free, or any portion not paid for by an employee. On a monthly basis, we will calculate the Gross Revenue generated from the operation of your Beauty Bungalows Franchise from reports generated by the software programs we require you to use. You must authorize us to make electronic funds transfer debits from your bank account for payment of the Royalty Fee and any other fees you owe to us.
- (3) Technology Fees include amounts for technology services that we pay for on your behalf. We will automatically deduct the Technology Fees in the same manner that we deduct your royalty payments.
- (4) Training for you, your Manager, and one additional person (a total of three (3) people)) is included in the Initial Franchise Fee. Additional charges are only applied if you choose to train more than three people. Training fees can be increased or decreased by us at any time in our discretion.
- (5) Ongoing assistance by telephone is included. We will charge you the Additional Assistance fee only if you require additional assistance at your Beauty Bungalows Franchise location. Fees for additional assistance can be increased or decreased by us at any time in our discretion.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, most fees outlined in Item 6 are uniformly imposed, meaning they are applied consistently to all franchisees. However, there are exceptions to this general rule. The document specifies that the Additional Assistance fee, Additional or Replacement Training Fee and Technology Fees are not uniformly imposed. These fees can vary or be dependent on specific circumstances or needs of the franchisee.
For example, the Additional Assistance fee is only charged if a franchisee requires on-site support at their Beauty Bungalows location. Similarly, the Additional or Replacement Training Fee is applicable if a franchisee elects to have more than three people attend the initial training. The Technology Fees include amounts for technology services that Beauty Bungalows pays for on the franchisee's behalf. Beauty Bungalows may add or delete services included in the Technology Fee and raise or lower the Technology Fee upon 30 days' written notice.
Furthermore, the Transfer Fee is not required if the transfer is to a corporation where the franchisee is the majority stockholder or to an immediate family member. In all other cases, the Transfer Fee is applicable. The fees associated with the Marketing Cooperative are determined by the members, with the franchisee's contribution not exceeding 2% of their Beauty Bungalows Franchise's monthly Gross Revenue.
Prospective franchisees should take note of these exceptions and understand the conditions under which these fees may be applied. It is important to clarify with Beauty Bungalows the specific criteria and potential costs associated with these non-uniformly imposed fees to accurately assess the overall investment and operational expenses.