Did Beauty Bungalows receive any amounts from its suppliers in the 2024 fiscal year?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ny interest in this designated supplier. In the 2024 fiscal year we did not receive any amounts from our suppliers.
If you would like to purchase required items from another supplier (other than our designated supplier), you may request our approval by submitting a written request for an evaluation of the alternative product or supplier. Based on the information and samples you supply to us, we will test the items supplied and review the proposed supplier's business reputation, delivery performance, credit rating and other information. You will be required to pay our actual costs incurred by us in investigating the supplier or vendor. The additional costs are estimated to be between $1,000 and $2,000 but may be more. The costs will include time, travel and materials associated with our reasonable efforts to investigate, inspect, test, and do reasonable due diligence on the proposed supplier or vendor. We expect to complete our review and advise you of our decision within 30 days after you submit the required information. The specifications and standards for these required purchases are in the Manual. We reserve the right to disapprove any previously approved vendor whose performance falls below our standards. We will make any approvals of new vendors or revoke approval of vendors in writing based on the vendor's credit worthiness, delivery standards, and cost and will incorporate our decision in the Manual. The specifications and standards for th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, in the 2024 fiscal year, Beauty Bungalows did not receive any amounts from its suppliers. However, Beauty Bungalows does have an arrangement with a designated supplier for furniture, fixtures, and equipment, where they are entitled to receive a rebate equal to 5% of the amount a franchisee purchases from this supplier.
This arrangement means that while Beauty Bungalows didn't receive supplier income in 2024, they have established a system to generate revenue from franchisee purchases through approved suppliers. For a prospective franchisee, this highlights the importance of understanding which suppliers are designated and the potential costs associated with purchasing from them. It also indicates that Beauty Bungalows has a financial incentive to encourage franchisees to use specific suppliers.
It's important for potential franchisees to evaluate the competitiveness of the designated supplier's pricing and product quality. While using approved suppliers ensures compliance with Beauty Bungalows' standards, franchisees should confirm that these suppliers offer reasonable value. Furthermore, the FDD states that franchisees may request approval for alternative suppliers, but they will be required to cover Beauty Bungalows' costs for evaluating the alternative, estimated between $1,000 and $2,000, which could be more depending on the extent of the investigation.