Are all Beauty Bungalows franchisees required to contribute the same amounts to the Brand Fund?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5.5% of Gross Revenue or a minimum royalty of $250 per week, whichever is greater. | Monthly, on the first Tuesday of each month | Your Royalty Fee will begin once your Beauty Bungalows Franchise is open for business. "Gross Revenue" is defined in Note (2) below this table. |
| Brand Fund Contribution ("Brand Fund") | Currently 1% of Gross Revenue per month. May be increased to a maximum of 2% of Gross Revenue. | Monthly, on the first Tuesday of each month | We may implement or change the contribution amount to the Brand Fund upon thirty (30) days' written notice. All franchisees will be required to contribute the same amounts to the Brand Fund; however the Company Owned Outlets may not contribute to the Brand Fund in the same amounts as our franchisees. |
| Local Area Marketing Requirement | Up to 2% of Gross Revenue. May be reduced to 0% based on your occupancy levels. | Monthly, on the first Tuesday of each month | In addition to the Brand Fund Contribution, you must spend a minimum of 2% per month on local advertising and promotion implemented in a format and using materials and designs approved by us. We may reduce, or waive entirely, the Local Area Marketing Requirement if you reach 75% or greater suite occupancy for available suites at your Beauty Bungalows franchise. If we establish a Marketing Cooperative (described in Note 8 below) then your contributions to any Marketing Cooperative shall count toward your Local Area Marketing Requirement. |
| Marketing Cooperative | Not yet established. When established, as set by Marketing Cooperative, but not to exceed 2% of monthly Gross Revenue (Note 8) | As established by Marketing Cooperative | See Note 8 regarding Marketing Cooperatives. If we establish a Marketing Cooperative (described in Note 8 below) then your contributions to any Marketing Cooperative shall count toward your Local Area Marketing Requirement. |
| Technology Fee (Note 3) | Currently $150 per month | Due on the 10th of each month | This amount includes your licensing and use of software, communications, or oth |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, all franchisees are required to contribute the same amounts to the Brand Fund. The Brand Fund contribution is currently 1% of Gross Revenue per month, but it may be increased to a maximum of 2% of Gross Revenue. Beauty Bungalows may implement or change the contribution amount with thirty days' written notice. However, the document notes that Company Owned Outlets may not contribute to the Brand Fund in the same amounts as franchisees.
The Brand Fund contribution is paid monthly, on the first Tuesday of each month. This fee is separate from the Local Area Marketing Requirement, which can be up to 2% of Gross Revenue. The Brand Fund is used for marketing and promotional activities to benefit the Beauty Bungalows brand as a whole.
It is important to note that while franchisees contribute a percentage of their gross revenue, Company Owned Outlets may not contribute the same amount. This could mean that franchisees are disproportionately funding the Brand Fund compared to corporate-owned locations. A prospective franchisee should consider this when evaluating the overall cost and benefits of investing in a Beauty Bungalows franchise.