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What were the total operating expenses for Beauty Bungalows in 2023?

Beauty_Bungalows Franchise · 2025 FDD

Answer 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.

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.