factual

What is Beauty Bungalows' role in the Alternative Supplier Evaluation process?

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

Type of Fee Amount Due Date Remarks
Transfer Fee $5,000 plus any Prior to acceptance of This fee is payable for each
location
(Development broker fees associated transfer. You must for which a franchise agreement has
Agreement) with the transfer or pay us a $1,000 non been signed under the ADA.
(Note
6) sale. refundable deposit
due at the time of
application. The
remaining balance is
due at the time of
approval of the
transfer.
Audit Our actual cost On demand We pay all audit costs unless the audit
shows an understatement of at least
2% of Gross Revenue for any month.
Also payable for failure to submit
required reports.
Late Payments and $100 per day plus On demand We may charge a late fee if you fail to
Interest interest on the unpaid make a required payment when due.
amount at a rate equal The $100 per day late fee will not
to 18% per year (or, if exceed $500 in any given calendar
such payment exceeds month.
the maximum allowed
by law, then interest
at the highest rate
allowed by law)
Franchise Renewal 15% of our then Upon expiration of Instead of paying the initial franchise
Fee current initial the initial franchise fee, upon renewal of your franchise
franchise fee or agreement agreement you will pay the reduced
$7,500, whichever is renewal fee
greater.
National $500 per attendee As incurred If we conduct an annual conference of
Conference Fee franchisees, you must send at least one
(1) representative from your Beauty
Bungalows
Franchise
to
the
conference.
We
may
charge
the
National Conference Fee regardless of
whether or not you actually attend.
Non-compliance $500 On demand We may charge you $500 if your
Fee business is not in compliance with our
system specifications or the franchise
agreement and you fail to correct the
non-compliance after 30 days' notice.
Thereafter, we may charge you $250
per week until you correct such non
compliance.
Third-party Pass through of costs, Varies We
have
the
right
to
require
Vendors plus reasonable franchisees to use third-party vendors
administrative charge.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

Based on the 2025 Beauty Bungalows Franchise Disclosure Document, there is no information provided regarding Beauty Bungalows' role in the Alternative Supplier Evaluation process. The provided excerpts from Item 6, which details other fees, does not mention any process for evaluating or approving alternative suppliers. The document does state that Beauty Bungalows has the right to require franchisees to use third-party vendors and suppliers that they designate. Currently, there are none. Examples can include computer systems.

Without a defined process, franchisees may lack the ability to propose alternative suppliers, potentially limiting their options and flexibility in sourcing products or services. This could impact their ability to control costs or find suppliers that better meet their specific needs.

A prospective Beauty Bungalows franchisee should ask the franchisor for details about the process for requesting approval of alternative suppliers, the criteria used for evaluation, and whether franchisees have any input into the selection of mandatory vendors. Understanding these aspects is crucial for assessing the level of autonomy a franchisee has in managing their supply chain and controlling operational costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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