Is Beauty Bungalows required to use all contributions collected for the Brand Fund in a given year?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not required to use all contributions collected for the Fund in a given year, and we may retain the amount to spend on the Fund in future years.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–30)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Beauty Bungalows is not required to use all contributions collected for the Brand Fund in a given year. Beauty Bungalows may retain the amount to spend on the Fund in future years.
Beauty Bungalows franchisees are required to contribute to the Brand Fund. The contribution amount is determined by Beauty Bungalows, but will not exceed 2% of the franchisee's Gross Revenue. The combined total of contributions to the Fund and any required expenditures in connection with a Multi-Area Marketing (MAM) Program will not exceed 2% of the franchisee's Gross Revenue in any given month.
Beauty Bungalows states that it has no fiduciary duty to franchisees regarding the Brand Fund or their contributions. Beauty Bungalows also has no obligation to make expenditures for franchisees in their area or territory or that are equivalent or proportionate to any individual franchisee's contribution to the Fund. An unaudited annual financial statement of the Fund will be prepared within 120 days of the close of Beauty Bungalows' fiscal year and will be available to any Franchisee upon written request.