Where can I find information about the fees a Beauty Bungalows franchisee is obligated to pay?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
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.
- (6) No Transfer Fee is required if you transfer your Beauty Bungalows Franchise to a corporation in which you are the majority stockholder, or if you transfer the Beauty Bungalows Franchise to your child, parent, sibling, or spouse.
In all other cases, you must pay the Transfer Fee if you transfer the Beauty Bungalows Franchise.
- (7) You must maintain insurance policies in amounts as specified by us periodically in the Manual.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, Item 6, titled "Other Fees," provides details regarding the various fees that a franchisee is obligated to pay. This section outlines that all fees listed are imposed by Beauty Bungalows or its affiliates, are payable to them, and are generally non-refundable unless otherwise specified. The fees are uniformly imposed, meaning they apply to all franchisees unless an exception is noted.
Item 6 also includes clarifying notes regarding certain fees. For example, it defines "Gross Revenue" as the total income from rental receipts and other revenue sources, excluding sales tax, promotional coupons, and free employee services. It also specifies that Beauty Bungalows will calculate Gross Revenue monthly using reports from required software programs and that franchisees must authorize electronic fund transfers for royalty and other fee payments. The document also mentions that Technology Fees cover technology services paid for by Beauty Bungalows on behalf of the franchisee and are automatically deducted like royalty payments.
Furthermore, the document clarifies that the initial franchise fee covers training for the franchisee, their manager, and one additional person. Additional training will incur extra charges, which Beauty Bungalows can adjust at its discretion. Ongoing telephone assistance is included, but on-site assistance may incur an additional fee, which Beauty Bungalows can also adjust. Lastly, a Transfer Fee is required for franchise transfers, except when transferring to a corporation where the franchisee is the majority stockholder or to a child, parent, sibling, or spouse. Franchisees are also required to maintain insurance policies as specified in the Manual.