Does the financial performance representation for Beauty Bungalows include all operating expenses?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the financial performance representation provided in Item 19 does not reflect all operating expenses. The document explicitly states that the representation does not include all costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit.

The FDD provides financial performance data based on the historical results of three company-owned outlets during the period from January 1, 2024, to December 31, 2024. While it details gross revenue and some operating costs, it also notes that certain expenses like taxes, interest on debt, depreciation, and amortization costs are excluded from the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) calculation. Additionally, pre-opening costs are not included in the financial performance representation, as these are detailed separately in Item 7.

Therefore, a prospective Beauty Bungalows franchisee should conduct their own independent investigation to determine all costs and expenses they will incur while operating the business. The FDD suggests that franchisees or former franchisees listed in Exhibit D may be a source of this information. It is crucial to understand the full scope of potential expenses to accurately assess the potential profitability of a Beauty Bungalows franchise.