What were the total operating expenses for Beauty Bungalows in 2023?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
rida | 2 | 2 | 0 | | Totals | 7 | 13 | 1 |
Beauty Bungalows Franchising, LLC STATEMENTS OF OPERATIONS For the years ended December 31, 2024 and 2023
| 2024 | 2023 | |||
|---|---|---|---|---|
| Operating revenues: | ||||
| Revenue | $ | 46,800 | $ | - |
| Technology fee | 200 | - | ||
| Total operating revenues | 47,000 | - | ||
| Operating expenses: | ||||
| Consulting costs | 182,185 | - | ||
| Advertising & marketing | 21,514 | 10,613 | ||
| Legal fees | 18,433 | 47,102 | ||
| Software | 13,464 | - | ||
| Referral fee | 12,626 | - | ||
| Professional fees | 12,195 | - | ||
| Travel | 9,133 | 1,538 | ||
| Insurance | 7,722 | - | ||
| Supplies | 5,644 | - | ||
| Rent | 3,000 | 6,500 | ||
| Meals & entertainment | 2,128 | _ | ||
| Office supplies | 1,362 | 19,274 | ||
| Other expenses | 895 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the total operating expenses for the company in 2023 were $85,311. This figure is derived from the company's statement of operations, which details various expenses incurred during that year. These expenses include advertising and marketing, legal fees, travel, rent, office supplies, and other miscellaneous costs.
For a prospective franchisee, understanding the franchisor's operating expenses is crucial as it provides insight into the financial health and stability of the Beauty Bungalows franchise system. A detailed breakdown of these expenses can help potential franchisees assess the costs associated with running their own franchise and determine the potential profitability of the business. It's important to note that these figures reflect the franchisor's expenses and may not directly translate to the operating expenses of an individual franchise location.
The FDD provides a comparative view by also listing the operating expenses for 2024, which totaled $290,301. The significant increase in operating expenses from 2023 to 2024 could be due to various factors, such as increased marketing efforts, legal costs, or investments in software and technology. A prospective franchisee should inquire about the reasons for these changes to better understand the financial dynamics of the Beauty Bungalows franchise.
It is also important to note that Beauty Bungalows experienced an operating loss of $85,311 in 2023. While this figure represents the franchisor's financial performance, prospective franchisees should conduct their own due diligence, including reviewing the financial performance representations (if any) in Item 19 of the FDD and consulting with financial advisors, to assess the potential financial risks and rewards of investing in a Beauty Bungalows franchise.