What is the minimum renewal fee for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement will automatically be extended from month-to-month until a renewal franchise agreement is executed or until Franchisor delivers a notice of non-renewal pursuant to Section 3.04 above.
- 3.06 Renewal Fee. Upon signing a renewal franchise agreement,
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, when a franchisee signs a renewal agreement, they won't have to pay another initial franchise fee. However, they must pay a renewal fee. This renewal fee is calculated as the greater of 15% of Beauty Bungalows' then-current initial franchise fee or $7,500.
For a prospective franchisee, this means that at the time of renewal, they should be prepared to pay at least $7,500. The actual amount could be higher if 15% of the then-current initial franchise fee exceeds this figure. This fee is in addition to any costs associated with renovations, upgrades, or modernizations that Beauty Bungalows may require as a condition of renewal.
It is important to note that the renewal agreement may also include higher royalty and advertising fees than the original agreement. Franchisees should carefully review the terms of the renewal agreement to understand the full financial implications of renewing their Beauty Bungalows franchise.