When is the Beauty Bungalows royalty fee due each month?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
ES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5.5% of Gross Revenue or a minimum royalty of $250 per week, whichever is greater. | Monthly, on the first Tuesday of each month | Your Royalty Fee will begin once your Beauty Bungalows Franchise is open for business. "Gross Revenue" is define |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the royalty fee is due monthly, specifically on the first Tuesday of each month. The royalty fee is calculated as 5.5% of Gross Revenue or a minimum of $250 per week, whichever amount is greater. This fee schedule begins once the Beauty Bungalows franchise location is open for business.
For a prospective franchisee, this means that on the first Tuesday of every month, Beauty Bungalows will expect payment of the royalty fee. It is important to understand how "Gross Revenue" is defined, as this figure directly impacts the royalty fee amount. According to the FDD, Gross Revenue includes all receipts from gross rental receipts and other revenue, whether received in cash, credit, checks, services, property, or other means of exchange. Sales tax receipts that are collected and paid to the government, promotional or discount coupons where the franchisee realizes no revenue, and free employee services or portions not paid for by an employee are excluded from Gross Revenue.
Beauty Bungalows requires franchisees to authorize electronic funds transfers from their bank account to cover the royalty fee and any other fees owed to them. This means franchisees must set up a system for automatic payments to ensure timely remittance of fees. Failing to pay on time could result in late fees or other penalties as outlined elsewhere in the FDD. Franchisees should carefully manage their cash flow to ensure they can meet this monthly obligation, especially during the initial months of operation when revenue may be lower.
In addition to the royalty fee, franchisees should also be aware of other fees due around the same time, such as the Brand Fund contribution and the Local Area Marketing Requirement, both also due on the first Tuesday of each month. Careful financial planning and adherence to the payment schedule are crucial for maintaining a good relationship with Beauty Bungalows and avoiding any disruptions to the franchise operation.