Does the financial performance representation for Beauty Bungalows include all costs of sales?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The financial performance representation does not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Beauty Bungalows business. Franchisees or former franchisees, listed in Exhibit D of this Franchise Disclosure Document, may be one source of this information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the financial performance representation provided in Item 19 does not reflect all costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. The FDD advises prospective franchisees to conduct an independent investigation of the costs and expenses they will incur while operating a Beauty Bungalows business.
The financial performance representation in Item 19 is based on the historical financial and operational results from Beauty Bungalows's three company-owned outlets during the period from January 1, 2024, to December 31, 2024. Item 19 details the gross revenue generated by the company-owned outlets, the operating costs associated with each outlet, and the estimated fees that each outlet would have incurred as a franchise.
The document specifically notes that the Item 19 data does not reflect pre-opening costs and expenses likely to be incurred when developing a new Beauty Bungalows outlet. For more information on pre-opening costs, the FDD directs prospective franchisees to Item 7. Franchisees and former franchisees listed in Exhibit D may also be a source of information about costs and expenses.