Is a Beauty Bungalows franchisee required to market on a local basis?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement).
Marketing Programs
Local
You are required to market on a local basis as an individual Beauty Bungalows Franchise or by local marketing agencies hired by you. We do not require you to spend any specific amounts on local marketing, but we recommend you spend approximately 1% to 2% of gross revenue on local marketing efforts. These expenditures may include wages and bonuses paid to your Manager or other employees who secure Bungalow renters in your Business. The amounts you spend on marketing will be influenced largely by the number of vacant suites at any given time in your Business.
Prior to opening your business, you must spend between $20,000 and $22,000 for advertising and promotion of your Beauty Bungalows Franchise with our preferred marketing vendors in your local market. Additionally, during the week of your anticipated opening date, you must spend a minimum of $2,000 on a grand opening specific marketing effort.
There are no restrictions on your marketing, except that you may not advertise independently on the World Wide Web (See Sections 4.03 and 9.01 of the Franchise Agreement) and any advertising or marketing materials must be approved by us prior to your use of such ma
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, franchisees are required to market on a local basis. Franchisees can fulfill this requirement either as an individual Beauty Bungalows franchise or through local marketing agencies they hire. While Beauty Bungalows does not mandate a specific amount to be spent on local marketing, they recommend allocating approximately 1% to 2% of gross revenue for these efforts.
The FDD specifies that these local marketing expenditures can include wages and bonuses for managers or other employees who secure bungalow renters for the business. The actual amount spent on marketing is expected to vary, largely depending on the number of vacant suites within the Beauty Bungalows location at any given time.
Prior to opening, franchisees must spend between $20,000 and $22,000 on advertising and promotion with Beauty Bungalows' preferred marketing vendors in the local market. Additionally, during the week of the grand opening, a minimum of $2,000 must be spent on a grand opening-specific marketing effort. Franchisees are restricted from advertising independently on the World Wide Web and all marketing materials must be approved by Beauty Bungalows prior to use. Beauty Bungalows will include the franchisee's business on their website.