What is the minimum weekly royalty fee required for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
soliciting or accepting orders within the franchisee's territory.
There is no minimum sales quota; however, there is a minimum royalty fee to encourage development of business in your territory. The minimum monthly royalty fee of $250 per week is required regardless of your particular level of sales. Failure to pay the royalties or minimum royalty is a material breach of the Franchise Ag
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, there is a minimum royalty fee required to encourage business development within a franchisee's territory. This minimum royalty fee is $250 per week, regardless of the franchisee's sales level.
This means that even if a Beauty Bungalows franchise location has low sales in a given week, the franchisee is still obligated to pay a minimum royalty of $250 to Beauty Bungalows. This policy ensures that Beauty Bungalows receives a consistent income stream, while also incentivizing franchisees to actively grow their businesses to exceed the minimum royalty threshold.
The FDD states that failure to pay royalties, including the minimum royalty fee, constitutes a material breach of the Franchise Agreement. This could ultimately lead to the termination of the Beauty Bungalows franchise agreement. Therefore, prospective franchisees should carefully consider their financial projections and ensure they can consistently meet this minimum royalty obligation, even during slow periods.