When does the Beauty Bungalows royalty fee obligation begin?
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 obligation begins once the Beauty Bungalows franchise is open for business. The royalty fee is 5.5% of Gross Revenue or a minimum of $250 per week, whichever is greater. This fee is due monthly, specifically on the first Tuesday of each month.
Gross Revenue, as defined in the FDD, includes all receipts from gross rental receipts and other revenue, whether received in cash, credit, checks, services, property, or other means of exchange. The only exclusions from Gross Revenue are sales tax receipts that the franchisee is legally required to collect and remit to the government, promotional or discount coupons where the franchisee realizes no revenue, and employee receipt of services if free, or any portion not paid for by an employee.
Beauty Bungalows requires franchisees to authorize electronic funds transfers from their bank accounts for the payment of the royalty fee and any other fees owed to them. This ensures timely and consistent payments. Franchisees should be aware of these payment terms and ensure they have sufficient funds available to cover the royalty fees once their franchise is operational.