What was the total revenue related to Beauty Bungalows franchises in 2024?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
actors.
2. Summary of significant accounting policies and nature of operations (continued)
Revenues by timing of recognition were as follows:
| 2024 | 2023 | |||
|---|---|---|---|---|
| Point in time: | ||||
| Franchise fees | $ | 46,800 | $ | - |
| Technology fee | 200 | |||
| Total |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the total revenue for Beauty Bungalows in 2024 was $47,000. This revenue is broken down into two categories: franchise fees and technology fees. The franchise fees totaled $46,800, while the technology fees amounted to $200. In 2023, the total revenue was $0.
It is important to note that the revenue reported here reflects the income of Beauty Bungalows Franchising LLC, the entity that sells franchises, and not the revenue of individual Beauty Bungalows franchise locations. This figure represents the initial fees and technology fees paid by franchisees to Beauty Bungalows.
A prospective franchisee should consider this information in the context of the overall financial health of Beauty Bungalows as a franchisor. While $47,000 in revenue may seem modest, it is important to consider that Beauty Bungalows is a relatively new franchise, formed in July 2021. The franchisor's revenue is expected to grow as more franchise locations open and generate royalty payments. The FDD states that for the years ended December 31, 2024 and 2023, there were no royalties earned.
It would be prudent for a potential Beauty Bungalows franchisee to inquire about the franchisor's projections for future revenue growth and the factors that are expected to drive that growth. Understanding the franchisor's financial performance and future prospects is a critical part of the due diligence process.