What was the total reported operating expense for Beauty Bungalows?
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 year 2024 were $290,301, and for the year 2023, they were $85,311. These expenses encompass various costs associated with running the Beauty Bungalows franchising business.
The operating expenses include consulting costs, advertising and marketing, legal fees, software, referral fees, professional fees, travel, insurance, supplies, rent, meals and entertainment, office supplies, and other expenses. Consulting costs were the highest operating expense in 2024, totaling $182,185. Advertising and marketing expenses were $21,514 in 2024 and $10,613 in 2023, while legal fees amounted to $18,433 in 2024 and $47,102 in 2023.
Prospective franchisees should note the significant increase in total operating expenses from 2023 to 2024. This increase may reflect the Beauty Bungalows's growth and expansion efforts, particularly in consulting and marketing. Understanding these costs is crucial for franchisees to accurately project their own potential expenses and profitability. The detailed breakdown of operating expenses provides valuable insight into where the company is investing its resources and where franchisees might expect to allocate their funds as well.