To whom are payments for architecture and design made for a Beauty Bungalows franchise?

Question

Accepted Answer

|  |  |  |  |  | To Whom |
|---|---|---|---|---|---|
|  | Low | High | Method Of |  |  |
| Type Of Expenditure(1) | Estimate | Estimate | Payment | When Due | Payment Is To Be Made |
|  |  |  |  |  |  |
| Initial Franchise Fee(2) | $49,900 | $49,900 | Lump sum | Upon signing Franchise Agreement | Us |
| Rent & Security Deposit3 | $20,000 | $60,000 | As determined by Landlord | Upon signing lease | Landlord |
| Utilities4 | $250 | $3,500 | As incurred | Prior to opening | Suppliers, Utilities, etc. |
| Leasehold | $675,000 | $1,553,000 | As incurred | Prior to | Vendors and |
| Improvements5 |  |  |  | opening | Suppliers |
| Furniture, Fixtures, and Equipment6 | $100,000 | $150,000 | As determined by Vendors | Prior to opening | Vendors and Suppliers |
| Architecture & Design7 | $25,000 | $25,000 | As Incurred | Prior to opening | Vendors and Suppliers |
| Computer Systems8 | $500 | $1,000 | As determined by Vendors | Prior to opening | Vendors and Suppliers |
| Insurance9 | $1,000 | $1,500 | As incurred | Prior to opening or as incurred | Insurance Company/ Agent |
| Signage10 | $10,000 | $20,000 | As incurred | As arranged with Vendors | Vendors |
| Office Expenses11 | $500 | $1,000 | As incurred | As incurred | Vendors and Suppliers |
| Pre-Opening and Grand Opening Marketing Spend12 | $22,000 | $24,000 | As incurred | Beginning 5 months prior to opening | Vendors and Suppliers |
| Business Licenses and | $4,000 | $10,000 | As incurred | As incurred | Government |
| Permits13 |  |  |  |  | agencies |
| Professional Fees14 | $3,500 | $5,000 | As incurred | As incurred | Attorneys, accountants, and other professionals |
| Travel and Living Expenses to Training15 | $0 | $3,000 | As incurred | As incurred | Airlines, hotels, food vendors, and other merchants. |
| Additional Funds | $25,000 | $50,000 | As incurred | As incurred | Suppliers, |
| (3 Months)16 |  |  |  |  | Utilities |
|  |  |  |  |  |  |
| TOTALS17 | $936,650 | $1,956,900 |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)

To whom are payments for architecture and design made for a Beauty Bungalows franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

					To Whom
	Low	High	Method Of
Type Of Expenditure(1)	Estimate	Estimate	Payment	When Due	Payment Is To Be Made

Initial Franchise Fee(2)	$49,900	$49,900	Lump sum	Upon signing Franchise Agreement	Us
Rent & Security Deposit3	$20,000	$60,000	As determined by Landlord	Upon signing lease	Landlord
Utilities4	$250	$3,500	As incurred	Prior to opening	Suppliers, Utilities, etc.
Leasehold	$675,000	$1,553,000	As incurred	Prior to	Vendors and
Improvements5				opening	Suppliers
Furniture, Fixtures, and Equipment6	$100,000	$150,000	As determined by Vendors	Prior to opening	Vendors and Suppliers
Architecture & Design7	$25,000	$25,000	As Incurred	Prior to opening	Vendors and Suppliers
Computer Systems8	$500	$1,000	As determined by Vendors	Prior to opening	Vendors and Suppliers
Insurance9	$1,000	$1,500	As incurred	Prior to opening or as incurred	Insurance Company/ Agent
Signage10	$10,000	$20,000	As incurred	As arranged with Vendors	Vendors
Office Expenses11	$500	$1,000	As incurred	As incurred	Vendors and Suppliers
Pre-Opening and Grand Opening Marketing Spend12	$22,000	$24,000	As incurred	Beginning 5 months prior to opening	Vendors and Suppliers
Business Licenses and	$4,000	$10,000	As incurred	As incurred	Government
Permits13					agencies
Professional Fees14	$3,500	$5,000	As incurred	As incurred	Attorneys, accountants, and other professionals
Travel and Living Expenses to Training15	$0	$3,000	As incurred	As incurred	Airlines, hotels, food vendors, and other merchants.
Additional Funds	$25,000	$50,000	As incurred	As incurred	Suppliers,
(3 Months)16					Utilities

TOTALS17	$936,650	$1,956,900