factual

Are Beauty Bungalows franchisees guaranteed to benefit from Multi-Area Marketing Programs?

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

isor, in an amount Franchisor determines at its sole option, in connection with a Multi-Area Marketing Program, which fee will be due and payable at the same time and in the same manner at the Royalty Fee. If Franchisor directly collects payments from Franchisee and other franchisees in connection with a Multi-Area Marketing Program, Franchisor will use such amounts in connection with such Multi-Area Marketing Program at Franchisor's sole determination, including to reimburse Franchisor's costs and expenses incurred in administering such Multi-Area Marketing Program. Franchisee acknowledges and agrees that a Multi-Area Marketing Program, or Franchisee's expenses or payments in connection with such Multi-Area Marketing Program, may or may not provide any benefit to Franchisee and may or may not be proportionate to expenses or payments incurred by Franchisee. Franchisor has no fiduciary duty with regard to any Multi-Area Marketing Program. Notwithstanding anything to the contrary in Section 9, Franchisee's combined total in a given calendar month of required expenses in connection with Multi-Area Marketing Programs and monthly contribution to the Brand Fund will not exceed two percent (2%) of Gross Revenue. Franchisor will not use any Multi- Area Marketing Program for advertising that is principally a solicitation for the sale of franchises, but Franchisor reserves the sole right to pursue any franchisee or business opportunity that may result from a Multi-Area Marketing Program. Franchisor reserves the right to include notations in any advertisement or marketing platform, including websites or mobile applications, that Franchises are available (or similar phrasing) along with contact forms or informational pages. Franchisee must adhere to maximum pricing to the extent permitted by law in connection with any Multi-Area Marketing Programs. All Multi-Area Marketing Programs are Trade Secrets of Franchisor.

  • 9.04 Brand Fund. Franchisee must contribute to the Brand Fund in an amount determined by Franchisor, which contribution amount will not exceed two percent (2%) of Gross Revenue per month, at the same time and in the same manner as the Royalty Fee. Franchisor may, at its sole option, adjust the amount of the required monthly contribution to the Brand Fund upon thirty (30) days' prior written notice to Franchise;

Source: Item 22 — CONTRACTS (FDD pages 47–48)

What This Means (2025 FDD)

According to Beauty Bungalows' 2025 Franchise Disclosure Document, franchisees are not guaranteed to benefit from Multi-Area Marketing Programs. The FDD states that a Multi-Area Marketing Program, or a franchisee's expenses or payments in connection with such a program, may or may not provide any benefit to the franchisee and may or may not be proportionate to expenses or payments incurred by the franchisee. Beauty Bungalows has no fiduciary duty regarding any Multi-Area Marketing Program.

Franchisees are required to participate in Multi-Area Marketing Programs required by Beauty Bungalows, and must adhere to maximum pricing to the extent permitted by law in connection with any Multi-Area Marketing Programs. Franchisees must contribute to the Brand Fund in an amount determined by Beauty Bungalows, which will not exceed two percent (2%) of Gross Revenue per month. Beauty Bungalows may adjust the amount of the required monthly contribution to the Brand Fund with thirty (30) days' prior written notice.

Beauty Bungalows will use payments collected from franchisees in connection with a Multi-Area Marketing Program at its sole determination, including to reimburse Beauty Bungalows' costs and expenses incurred in administering such program. The combined total in a given calendar month of required expenses in connection with Multi-Area Marketing Programs and the monthly contribution to the Brand Fund will not exceed two percent (2%) of Gross Revenue. Beauty Bungalows will not use any Multi-Area Marketing Program for advertising that is principally a solicitation for the sale of franchises, but reserves the sole right to pursue any franchisee or business opportunity that may result from a Multi-Area Marketing Program. All Multi-Area Marketing Programs are Trade Secrets of Beauty Bungalows.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.