Does Beauty Bungalows provide material benefits to franchisees based on their use of designated suppliers?

According to Beauty Bungalows's 2025 Franchise Disclosure Document, Beauty Bungalows does not provide material benefits to franchisees for using designated or approved suppliers. The FDD specifies that benefits such as renewing or granting additional franchises are not tied to the franchisee's use of these suppliers.

However, Beauty Bungalows does negotiate purchase arrangements with suppliers and distributors, which may include price terms that benefit the entire Beauty Bungalows system. Beauty Bungalows may also receive rebates or volume discounts from the purchase of salon equipment, beauty supplies, hair care products, or salon or spa inventory that they resell to franchisees.

While franchisees are not directly rewarded for using specific suppliers, they are required to purchase between 60% and 85% of their total purchases during the establishment of their business and 25% to 50% of their ongoing expenses from designated or approved suppliers or according to Beauty Bungalows' specifications. This requirement ensures uniformity and quality control within the Beauty Bungalows system, but it also means franchisees must adhere to the approved supplier list, which could impact their purchasing flexibility.