What is the non-refundable portion of the Beauty Bungalows Transfer Fee?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
r your site selection efforts. | | Transfer Fee (Franchise Agreement) (Note 6) | $5,000 plus any broker fees associated with the transfer or sale, per location. | Prior to acceptance of transfer. You must pay us a $1,000 non refundable deposit due at the time of application. The remaining balance is due at the time of approval of the transfer. | Payable before you sell your franchise. | | Type of Fee | Amount | Due Date | Remarks | |-----------------------|--------------------------------------------------|------------------------------------------|----------------------------------------------------------------------------------| | Transfer Fee | $5,000 plus any | Prior to acceptance of | This fee is payable for each | | | | | location | | (Development | broker fees associated | transfer. You must | for which a franchise agreement has | | Agreement) | with the transfer or | pay us a $1,000 non | been signed under the ADA. | | (Note | | | | | 6) | sale. | refundable deposit | | | | | due at the time of | | | | | application. The | | | | | remaining balance is | | | | | due at the time of | | | | | approv
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Transfer Fee is $5,000 plus any broker fees associated with the transfer or sale, per location. A portion of this fee, specifically $1,000, is non-refundable.
This $1,000 non-refundable deposit is due at the time of application for the transfer. The remaining balance of $4,000, plus any applicable broker fees, is due upon approval of the transfer. This means that if Beauty Bungalows does not approve the transfer for any reason, the franchisee will not receive the $1,000 deposit back.
This type of non-refundable deposit is relatively common in franchising. It is designed to cover Beauty Bungalows' administrative costs associated with reviewing the transfer application and assessing the potential transferee. Franchisees should carefully consider the likelihood of approval before submitting a transfer application and paying the non-refundable deposit.
It is important to note that no Transfer Fee is required if you transfer your Beauty Bungalows Franchise to a corporation in which you are the majority stockholder, or if you transfer the Beauty Bungalows Franchise to your child, parent, sibling, or spouse.