What was the total of the Estimated Franchise Expenses for the Beauty Bungalows company-owned outlet #1?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
by the Gross Revenue figure for a given Measurement Period.
Part III - Company-Owned Outlet #3 (29 Suites | ~6,000 sq ft.)1
| January 1, 2024 to December 31, 2024 | |
|---|---|
| GROSS REVENUE2 | $334,405 |
| Key Operating Expenses | |
| Advertising | $25,300 |
| Cleaning Supplies | $1,157 |
| Insurance | $4,173 |
| Janitorial | $14,040 |
| Legal/Licenses | $590 |
| Manager3 | $16,400 |
| Rent/NNN/CAMS Expense | $97,319 |
| (3 months free) | |
| Repairs & Maintenance | $5,325 |
| Utilities | $16,637 |
| Bank Fees | $977 |
| Total Key Operating Expenses | $181,918 |
| Estimated Franchise Operating Expenses4 | |
| Royalty Fees (5.5%) | $18,392 |
| Brand Fund Contribution (1%) | $3,344 |
| Technology Fee | $1,800 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–45)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the total Estimated Franchise Expenses for Company-Owned Outlet #1 for the period of January 1, 2024, to December 31, 2024, was $23,536. This total is comprised of three separate fees: Royalty Fees, Brand Fund Contribution, and a Technology Fee.
The Royalty Fees, calculated at 5.5% of gross revenue, amounted to $18,392. The Brand Fund Contribution, which is 1% of gross revenue, totaled $3,344. The Technology Fee was $1,800.
It is important to note that Company-Owned Outlet #1, located in Huntington Beach, California, has 15 individual suites. The FDD notes that Beauty Bungalows did not pay these fees during the measurement period, but the franchisor included them in the table as if the location had paid them as required by the franchise agreement. This provides prospective franchisees with an estimate of what these expenses would be if the outlet were franchised.