What figures are used to calculate the EBITDA (if franchised) Margin for Beauty Bungalows?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the EBITDA (if franchised) Margin is calculated by dividing the EBITDA (if franchised) figure by the Gross Revenue figure for a given Measurement Period. The EBITDA (if franchised) is calculated by subtracting the Total Key Operating Expenses and Estimated Franchise Operating Expenses from the Gross Revenue for each Measurement Period. The Gross Revenue includes all amounts collected from suite rental income, but excludes taxes collected and paid to government agencies.

For Company-Owned Outlet #1, with 15 suites, the Gross Revenue was $293,768. Key Operating Expenses totaled $171,761, and Estimated Franchise Operating Expenses were $23,536. This resulted in an EBITDA (if franchised) of $98,471 and an EBITDA margin of 34%. For Company-Owned Outlet #2, with 27 suites, the Gross Revenue was $534,966. Key Operating Expenses totaled $310,987, and Estimated Franchise Operating Expenses were $36,573. This resulted in an EBITDA (if franchised) of $187,406 and an EBITDA margin of 35%. For Company-Owned Outlet #3, with 29 suites, the Gross Revenue was $334,405. Key Operating Expenses totaled $181,918, and Estimated Franchise Operating Expenses were $23,536. This resulted in an EBITDA (if franchised) of $128,951 and an EBITDA margin of 39%.

It is important to note that these figures are based on the performance of Beauty Bungalows' company-owned outlets and may not be indicative of the performance of a franchised location. The FDD also states that these figures do not reflect certain pre-opening costs and expenses that a franchisee is likely to incur. Prospective franchisees should conduct their own independent investigation of the costs and expenses associated with operating a Beauty Bungalows franchise.