factual

What must all salon designs conform to when operating a Beauty Bungalows franchise?

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

ONS ON SOURCES OF PRODUCTS AND SERVICES**

We require that you establish and operate your franchised location in compliance with your Franchise Agreement. You must strictly follow our specifications as set forth in the operations manual we provide to you or other written materials from us (collectively, the "Manual"), which we may modify from time to time, and which may be in print or electronic format. We reserve the right to require you to use an electronic version of the Manual and to require you to access the document using the Internet or an intranet created and supported by us. Our standards and specifications have been prescribed in order to maintain a uniform standard of high quality, value, tenant recognition, advertising support and availability to be furnished to the public in connection with our Marks. In operating the Beauty Bungalows Franchise, all fixtures, furniture, and equipment and all salon designs must conform to our standards and specifications, which

have been established through years of experience. In the future, we may modify our fixtures, furniture, and equipment and salon design specifications.

You are required to subscribe to and use the bookkeeping, accounting and record keeping and data processing system conforming to the requirements and formats that we prescribe, including our standard chart of accounts and methodology, format, submission process and timelines. You must use the operational data control system approved by us, as further described in the Manuals. You must furnish us period reports, which include and are not limited to, gross revenue and rent revenue reports, vacancy and occupancy reports, lease expirations reports, profit and loss statements, balance sheets, statement of cash flows, sales activity reports and annual tax returns for all entities and corporations related to your Beauty Bungalows Franchise. We may require you to provide us access to some or all of these reports via our accounting and/or CRM software programs.

You are required to use our preferred marketing vendors for your pre-opening marketing spend.

During the 2024 fiscal year, neither we nor our affiliates earned any revenue, rebates, or other material considerations from required purchases or leases in the 2024 fiscal year.

We estimate that your purchases from designated or approved suppliers or in accordance with our specifications will represent approximately between 60% and 85% of your total purchases in connection with the establishment of your business and will represent from 25% to 50% of your ongoing expenses.

We and our affiliates may receive rebates from suppliers and vendors based on your purchases of products and services, promotional allowances, volume discounts and other programs. As we have just begun franchising, we and our affiliates have not received any rebates from suppliers or vendors based upon franchisee purchases of products or services. None of our owners, directors, or principal officers owns any interest in any designated or approved supplier. There is one designated supplier for certain items of furniture, fixtures, and equipment that you will use in the build-out of your Beauty Bungalows franchise. We are entitled to receive a rebate equal to 5% of the amount a franchisee purchases for items sourced through this supplier. None of our owners, directors or affiliates owns any interest in this designated supplier.

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, when operating a Beauty Bungalows franchise, all fixtures, furniture, equipment, and salon designs must conform to the franchisor's standards and specifications. These standards and specifications have been established through years of experience and may be modified in the future.

In addition to adhering to Beauty Bungalows's design standards, franchisees must also develop their location in accordance with specified exterior and interior materials, finishes, dimensions, design, image, interior layout, décor, fixtures, furnishings, equipment, color schemes, and signs. These elements must be consistent with the Beauty Bungalows system products and Marks. Franchisees are required to use an architect designated by Beauty Bungalows to draft a preliminary test fit floor plan and directly pay the designated architect for this service.

Furthermore, franchisees must prepare all required construction plans and specifications to suit the site's shape and dimensions, ensuring compliance with applicable ordinances, building codes, permit requirements, and lease requirements. The architect used for the full set of construction documents and required engineering must be approved by Beauty Bungalows. Franchisees must submit construction plans and specifications to Beauty Bungalows for review before starting construction and provide all revised and "as built" plans during construction. However, Beauty Bungalows's review is limited to assessing compliance with their design standards and does not ensure compliance with local ordinances, building codes, or ADA standards.

In developing and operating the location, franchisees must use only the fixtures, furnishings, equipment, and signs that Beauty Bungalows requires and has approved. These items must meet the franchisor's specifications and standards for quality, design, appearance, function, and performance. Franchisees are required to use designated or approved suppliers for these items, as they are the only ones that meet Beauty Bungalows's specifications and standards. Franchisees may only display signs, emblems, lettering, logos, and display materials that Beauty Bungalows approves in writing.

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.