Does Beauty Bungalows offer assistance in obtaining facilities, including related financing, architectural, and engineering services?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
In accordance with Topic 606, we account for the following pre-opening services as distinct from the franchise license:
- Assistance in the selection of a site.
- Assistance in obtaining facilities and preparing the facilities for their intended use, including related financing, architectural, and engineering services, and lease negotiation.
- Training of the franchisee's personnel or the franchisee.
- Preparation and distribution of manuals and similar material concerning operations, administration, and record-keeping.
- Bookkeeping, information technology, and advisory services, including setting up the franchisee's records and advising the franchisee about income, real estate, and their taxes or about regulations affecting the franchisee's business; and
- Inspection, testing, and other quality control programs.
The transaction price attributable to performance obligations is recognized as the performance obligations are satisfied. The portion of the franchise fee, if any, that is not attributable to a distinct performance obligation is amortized over the life of the related franchise agreement.
Additionally, the Company will record an asset for unrealized expenses related to the sale of franchises.
As of December 31, 2023, neither the franchise fees for signed engagements nor the costs associated with those sales were recognized as no locations have been opened at this point.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Beauty Bungalows does offer assistance in obtaining facilities. Specifically, Beauty Bungalows provides assistance in obtaining facilities and preparing them for their intended use. This assistance includes related financing, architectural, and engineering services, as well as lease negotiation.
This is a significant benefit for prospective franchisees, as navigating the complexities of site selection, financing, and facility preparation can be challenging. Beauty Bungalows' support in these areas can potentially save franchisees time and money, and reduce the risk of making costly mistakes.
However, the FDD also states that as of December 31, 2023, no locations have been opened. This means that while Beauty Bungalows offers these pre-opening services, there is no track record yet of how effective this assistance has been in practice. Prospective franchisees should inquire about the specific types of assistance offered, the qualifications of the personnel providing the assistance, and any success stories or case studies that Beauty Bungalows can share.