What is the minimum royalty fee for a Beauty Bungalows franchise per week?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5.5% of Gross Revenue or a minimum royalty of $250 per week, whichever is greater. | Monthly, on the first Tuesday of each month | Your Royalty Fee will begin once your Beauty Bungalows Franchise is open for business. "Gross Revenue" is defined in Note (2) below this table. |
| Brand Fund Contribution ("Brand Fund") | Currently 1% of Gross Revenue per month. May be increased to a maximum of 2% of Gross Revenue. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the royalty fee is 5.5% of gross revenue or a minimum of $250 per week, whichever is greater. This royalty fee is a recurring expense that franchisees must pay to Beauty Bungalows for the right to use the Beauty Bungalows brand name, operating system, and other intellectual property. The royalty fee begins once the Beauty Bungalows franchise is open for business.
For a prospective Beauty Bungalows franchisee, this means that even if their gross revenue is low, they must still pay a minimum of $250 per week in royalty fees. If 5.5% of their gross revenue exceeds $250 in a given week, they will pay the higher amount. This structure ensures that Beauty Bungalows receives a consistent income stream from each franchise location, regardless of its performance.
The FDD also specifies that "Gross Revenue" means the total of all receipts derived from gross rental receipts and other revenue, whether the receipts are evidenced by cash, credit, checks, services, property, or other means of exchange. Gross Revenue excludes only sales tax receipts that you must by law collect from customers and that you actually pay to the government, promotional or discount coupons to the extent that Franchisee realizes no revenue, and employee receipt of services, if free, or any portion not paid for by an employee. The franchisee must authorize Beauty Bungalows to make electronic funds transfer debits from their bank account for payment of the Royalty Fee and any other fees owed to them.