Under what circumstances is the Development Fee for Beauty Bungalows deemed fully earned?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
for Multi-Unit Development**
If you choose and we agree, you may purchase multiple Beauty Bungalows Franchises under an ADA. You may purchase multiple units in a group of two (2) or more units with our prior approval (two (2) is the minimum required). You will be required to sign our ADA and agree to open your additional Beauty Bungalows Franchises upon a set schedule. The Development Fee is deemed fully earned upon receipt and there are no refunds of the Development Fee under any circumstances. If you execute an ADA, you will be required to execute a Franchise Agreement for the first unit in your ADA concurrently with your execution of the ADA.
The Development Fee you must pay to us depends upon the number of Beauty Bungalows Franchises we grant you the right to develop in your Development Area in accordance with the Development Schedule set forth in the ADA, and is calculated as follows:
Development Fee Chart
| Number of Franchised Businesses | Initial Franchise Fee | Cumulative Development Fee |
|---|---|---|
| 1 |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the Development Fee is considered fully earned upon receipt. This means that once Beauty Bungalows receives the Development Fee from a franchisee who is purchasing multiple units under an Area Development Agreement (ADA), the fee is deemed earned by Beauty Bungalows.
Notably, the FDD states that under no circumstances will the Development Fee be refunded. This is a critical point for prospective multi-unit franchisees to understand. Once the Development Fee is paid, it is non-refundable, regardless of whether the franchisee ultimately opens all the Beauty Bungalows locations outlined in the ADA. This policy is fairly standard in the franchise industry, as the fee compensates the franchisor for granting the rights to develop a specific territory and for the initial support provided.
If a franchisee chooses to purchase multiple Beauty Bungalows franchises under an ADA, they must adhere to a set schedule for opening the additional locations. The Development Fee amount depends on the number of franchises the franchisee is granted the right to develop within a specific Development Area, as detailed in the Development Schedule within the ADA. The franchisee will also be required to execute a Franchise Agreement for the first unit concurrently with the execution of the ADA. For each subsequent Beauty Bungalows franchise opened under the ADA, the franchisee will not pay any additional Initial Franchise Fee at the time of executing each franchise agreement.