How can a Beauty Bungalows franchisee access the unaudited annual financial statement of the Brand Fund?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
An unaudited annual financial statement of the Fund will be prepared within 120 days of the close of our fiscal year and will be available to any Franchisee upon written request.
There were no contributions made to the Brand Fund as of the close of our previous fiscal year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, an unaudited annual financial statement of the Brand Fund will be prepared within 120 days of the close of Beauty Bungalows' fiscal year. Any Beauty Bungalows franchisee can access this statement by submitting a written request.
This means that franchisees have a right to review the financial activity of the Brand Fund, which is funded by a percentage of their gross revenue (currently 1%, but not exceeding 2%). The availability of this financial statement provides a degree of transparency regarding how the Brand Fund is being managed and spent.
However, it's important to note that the financial statement is unaudited, meaning it has not been independently verified by a certified public accountant. While it offers some insight, franchisees should be aware of its limitations and consider asking further questions if needed. Additionally, the FDD states that as of the close of the previous fiscal year, there were no contributions made to the Brand Fund.