What does Beauty Bungalows Franchising, LLC detail in Parts I - III of Item 19?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
entation will be made available to the prospective franchisee upon reasonable request.
Beauty Bungalows Franchising, LLC Parts I - III of this Item 19 details the Gross Revenue generated by the Company-Owned Outlets during the Measurement Period along with (a) the costs and expenses associated with operating each Company-Owned Outlet (collectively, the "Operating Costs"); and (b) the estimated fees that would have been incurred by each Company-Owned Outlet in connection with the Royalty Fees, Marketing Fees (excluding those the Company-Owned Outlet also pays), if it were a franchise outlet governed by our current form of franchise
agreement (collectively, the "Estimated Fees") over the Measurement Period. Any differences between the operations of a Company-Owned Outlet and the operations of our franchised outlets are described in the footnotes to each table. The Company-Owned Outlet's fiscal year follows the calendar year ending December 31.
Except for the Estimated Franchise Operating Expenses that are (a) estimated and calculated based on the Gross Revenue figures reported by the Company-Owned Outlet, and (b) required to be disclosed herein under applicable pre-sale disclosure laws, the data and information provided in Parts I - III of this Item 19 are based on the historical and actual performance of the Company-Owned Outlets over the Measurement Period(s) detailed above.
The explanatory notes included with the following charts are an integral part of this financial performance representation and should be read in their entirety for a full understanding of the information contained in the following charts.
Some outlets have sold this amount. Your individual results may differ. There is no assurance you will sell as much.
Part I - Company-Owned Outlet #1 (15 Suites | ~3,000 sqft.)1
| January 1, 2024 to December 31, 2024 | |
|---|---|
| GROSS REVENUE2 | $293,768 |
| Key Operating Expenses | |
| Advertising | $412 |
| Cleaning Supplies | $609 |
| Insurance | $735 |
| Janitorial | $7,280 |
| Legal/ licenses | $284 |
| Manager3 | $0 |
| Rent/NNN/CAMS Expense | $146,654 |
| Repairs & Maintenance | $7,920 |
| Utilities | $11,429 |
| Bank Fees | $238 |
| Total Key Operating Expenses | $175,561 |
| Estimated Franchise Operating Expenses4 | |
| Royalty Fees (5.5%) | $16,157 |
| Brand Fund Contribution (1%) | $2,938 |
| Technology Fee | $1,800 |
| Total Franchise Expenses | $20,895 |
| EBITDA (if franchised)5 | $97,312 |
| EBITDA (if franchised) Margin6 | 33% |
| Suite Profiles8 |
|---|
| Total Suites: 15 |
| Suite Size Range: 111 - |
| 185 sq |
| ft. |
| Suite Rent |
| Range: $350 - |
| $490 |
| per week |
Notes to Part I:
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- Company Owned Outlet #1 Company-Owned Outlet #1 operates in Huntington Beach, California and has been open since March 2017. It is comprised of 15 individual suites of varying sizes. We estimate that your Beauty Bungalows Franchise location will typically be between 5,500 to 8,000 square feet and will contain 25-40 individual suites of varying sizes.
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- Gross Revenue "Gross Revenue" means all amounts collected from suite rental income generated at Company-Owned Outlet #1 during each Measurement Period. Gross Revenue does not include any revenue collected in the form of taxes collected and then paid to applicable government agencies.
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- Manager Compensation Company-Owned Outlet #1 was owner-operated and did not employ a dedicated Manager.
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Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Parts I-III of Item 19 provide details regarding the financial performance of the company-owned outlets. Specifically, it details the Gross Revenue generated by the Company-Owned Outlets during the Measurement Period along with (a) the costs and expenses associated with operating each Company-Owned Outlet (collectively, the "Operating Costs"); and (b) the estimated fees that would have been incurred by each Company-Owned Outlet in connection with the Royalty Fees, Marketing Fees (excluding those the Company-Owned Outlet also pays), if it were a franchise outlet governed by our current form of franchise agreement (collectively, the "Estimated Fees") over the Measurement Period. The Measurement Period is defined as the period beginning January 1, 2024, and ending December 31, 2024.
Part I of Item 19 relates to Company-Owned Outlet #1, which has 15 suites and is approximately 3,000 sqft. For the period of January 1, 2024, to December 31, 2024, this location had a Gross Revenue of $334,405. Key operating expenses totaled $181,918, which includes advertising, cleaning supplies, insurance, janitorial, legal/licenses, manager, rent/NNN/CAMS expense, repairs & maintenance, utilities, and bank fees. Estimated franchise operating expenses totaled $23,536, which includes royalty fees (5.5%), brand fund contribution (1%), and a technology fee. The EBITDA (if franchised) was $128,951, with an EBITDA (IF FRANCHISED) Profit Margin of 39%.
Part II of Item 19 relates to Company-Owned Outlet #2, which has 27 suites and is approximately 5,700 sqft. For the period of January 1, 2024, to December 31, 2024, this location had a Gross Revenue of $534,966. Key operating expenses totaled $310,987, which includes advertising, cleaning supplies, insurance, janitorial, legal/licenses, manager, rent/NNN/CAMS expense, repairs & maintenance, utilities, and bank fees. Estimated franchise operating expenses totaled $36,573, which includes royalty fees (5.5%), brand fund contribution (1%), and a technology fee. The EBITDA (if franchised) was $187,406, with an EBITDA (IF FRANCHISED) Profit Margin of 35%. The suite rent range is $310 - $545 per week.
Part III of Item 19 relates to Company-Owned Outlet #3, which has 29 suites and is approximately 6,000 sqft. For the period of January 1, 2024, to December 31, 2024, this location had a Gross Revenue of $293,768. Key operating expenses totaled $174,886, which includes advertising, cleaning supplies, insurance, janitorial, legal/ licenses, manager, rent/NNN/CAMS expense, repairs & maintenance, utilities, and bank fees. Estimated franchise operating expenses totaled $22,473, which includes royalty fees (5.5%), brand fund contribution (1%), and a technology fee. The EBITDA (if franchised) was $96,409, with an EBITDA (IF FRANCHISED) Profit Margin of 33%.