factual

What is the maximum combined total of contributions to the Brand Fund and required expenditures in connection with a MAM Program for a Beauty Bungalows franchise, expressed as a percentage of Gross Revenue in any given month?

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

You must contribute to the Brand Fund ("Fund") in an amount we designate (currently 1% of Gross Revenue), which contribution amount will not exceed 2% of your Gross Revenue. Your combined total of contributions to the Fund and any required expenditures in connection with a MAM Program will not exceed 2% of your Gross Revenue in any given month.

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, the maximum combined total of contributions to the Brand Fund and required expenditures in connection with a Multi-Area Marketing (MAM) Program will not exceed 2% of a franchisee's Gross Revenue in any given month. This means that a Beauty Bungalows franchisee's financial obligations towards these two marketing avenues are capped at this percentage.

This 2% cap provides some predictability for franchisees in budgeting their monthly expenses. It prevents Beauty Bungalows from imposing marketing costs that could potentially exceed this limit, regardless of the specific amounts allocated to the Brand Fund versus the MAM Program. The franchisee needs to be aware of how Beauty Bungalows allocates the funds and what specific marketing activities are covered under each program.

It's important to note that while the combined total is capped, Beauty Bungalows has discretion in determining the allocation between the Brand Fund and MAM Programs. Franchisees should seek clarification from Beauty Bungalows regarding the typical allocation and the types of marketing activities funded through each program to fully understand how their contributions are being utilized and to assess the potential benefits for their specific location.

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.