When is the Local Area Marketing spend due for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the Local Area Marketing spend is due monthly, on the first Tuesday of each month. Franchisees are required to spend up to 2% of Gross Revenue on local advertising and promotion. However, this requirement may be reduced to 0% if the Beauty Bungalows franchise reaches 75% or greater suite occupancy for available suites.
This Local Area Marketing Requirement is in addition to the Brand Fund Contribution, which is currently 1% of Gross Revenue per month and may be increased to a maximum of 2%. If Beauty Bungalows establishes a Marketing Cooperative, contributions to the cooperative will count toward the Local Area Marketing Requirement, but the contribution will not exceed 2% of monthly Gross Revenue.
It's important to note that the Local Area Marketing Requirement is a percentage of Gross Revenue, so the actual dollar amount will vary depending on the franchise's sales. The flexibility to reduce or waive the requirement based on occupancy levels could be beneficial for franchisees in the early stages of operation or in markets with lower demand. Franchisees should also be aware of the potential for a Marketing Cooperative to be established, which could impact how their marketing funds are spent.