Does the financial performance representation for Beauty Bungalows include all other costs or expenses?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the financial performance representation provided in Item 19 does not reflect all costs and expenses that a franchisee may incur. Specifically, the FDD states that the representation does not reflect all costs of sales, operating expenses, or other costs that must be deducted from gross revenue to obtain net income or profit. This means that the figures presented are not a complete picture of a franchisee's potential profitability.

Furthermore, the Item 19 financial performance representation is based on the historical financial and operational results from Beauty Bungalows' three existing company-owned outlets during the period beginning January 1, 2024, and ending December 31, 2024. The document explicitly notes that these figures do not include certain pre-opening costs and expenses that a new franchisee is likely to incur. These pre-opening costs are detailed separately in Item 7 of the FDD.

Given these limitations, Beauty Bungalows advises prospective franchisees to conduct their own independent investigation of the costs and expenses they will incur while operating their Beauty Bungalows business. The FDD suggests that franchisees or former franchisees, listed in Exhibit D of the document, may be a valuable source of this information. This is a common practice in franchising, as it allows potential franchisees to gather more personalized and realistic financial projections based on their specific circumstances and location.