What is the 'Measurement Period' used to calculate the financial performance representation for Beauty Bungalows?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
The financial performance representation in this Item 19 is historic based upon our existing Company-Owned Outlets. It includes the historical financial and operational results from our 3 existing Company-Owned Outlets during the period beginning January 1, 2024 and ending December 31, 2024 (the "Measurement Period"). We do not have any franchise outlets in operation as of the issuance date of this Disclosure Document. We have a reasonable basis for the financial performance information disclosed in this Item 19 and written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the financial performance representation is based on the historical financial and operational results from their three company-owned outlets during the period beginning January 1, 2024, and ending December 31, 2024. This period is referred to as the "Measurement Period."
For a prospective franchisee, this means the financial data presented in Item 19 reflects the performance of Beauty Bungalows' company-owned locations over the course of a single calendar year. This provides a snapshot of the brand's financial viability based on recent performance.
It is important to note that Beauty Bungalows does not have any franchised outlets in operation as of the issuance date of the FDD. The financial performance representation is based solely on company-owned outlets. The FDD also states that this Item 19 does not reflect certain pre-opening costs and expenses and does not reflect all the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. A prospective franchisee should conduct an independent investigation of the costs and expenses they will incur in operating their Beauty Bungalows business.