Beauty Bungalows Franchising, LLC Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Health & Wellness
• Initial Investment: $976,650 to $2,221,900
• Franchise Fee: The disclosure does not clearly establish a single franchise fee; fee references include $49,900 for one franchised business and a separate $500 figure appears in the extracted fee fields
• Royalty: 5.5% of Gross Revenue or $250 per week, whichever is greater
• Marketing / Ad Fee: 1% brand fund contribution; local area marketing of up to 2% of Gross Revenue, which may be reduced to 0% based on occupancy levels
• Key additional recurring fees: $150 per month technology fee; possible marketing cooperative contribution up to 2% of monthly Gross Revenue if established
• Number of locations: 3 company-owned outlets referenced; no franchise outlets in operation as of the issuance date of the disclosure
• Best Fit: Owner with active oversight or an operator who will install a full-time trained manager

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The estimated initial investment ranges from $976,650 to $2,221,900, which places this in a very high startup cost category. The disclosure also lists additional funds of $25,000 to $50,000, suggesting a meaningful working-capital requirement beyond buildout and opening costs.

A major cost driver appears to be the physical facility itself. The Item 19 examples show large rent, NNN, and CAM expense figures at company-owned outlets, which is consistent with a location-heavy model. The disclosure also indicates a technology component and equipment needs, adding to upfront and ongoing operating complexity.

The initial franchise fee is not cleanly established in the extracted figures. The fee tables referenced in the disclosure include a schedule showing $49,900 for one franchised business, with lower per-unit fees for larger development commitments, but a separate extracted field shows $500. The disclosure does not clearly establish which figure should be treated as the standard single-unit franchise fee without reviewing the underlying fee table directly.

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• Royalty fee: 5.5% of Gross Revenue or $250 per week minimum, whichever is greater
• Brand fund contribution: Currently 1% of Gross Revenue, with the right to increase to 2%
• Local area marketing requirement: Up to 2% of Gross Revenue, and may be reduced to 0% if occupancy reaches 75% or greater
• Marketing cooperative: Not yet established; if created, contribution may be set by the cooperative but not exceed 2% of monthly Gross Revenue
• Technology fee: $150 per month
• Additional/replacement training: $500 per person per day
• Special support fee: $500 per day per representative plus travel and living expenses
• Site selection support fee: $500 per representative per day if requested and provided
• Transfer fee: $5,000 per location plus any broker fees, with a $1,000 non-refundable deposit at application

Overall, the recurring fee burden appears moderate on paper: the base royalty and brand fund total 6.5% of Gross Revenue, with local marketing potentially adding more. The weekly royalty minimum matters if revenue ramps slowly, because it can raise the effective fee load at lower sales levels.

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Yes, the FDD includes an Item 19 financial performance representation, but it is based on company-owned outlets, not franchised outlets. The disclosure states that there were no franchise outlets in operation as of the issuance date.

The Item 19 data covers 3 existing company-owned outlets for the period January 1, 2024 to December 31, 2024, although only 2 outlet tables are visible in the provided figures. The disclosure states the company-owned outlets operate in materially the same way as franchise outlets.

Reported Item 19 figures shown

Outlet A

• Gross revenue: $293,768
• Total key operating expenses: $175,561
• Estimated franchise expenses: $20,895
• EBITDA (if franchised): $97,312
• EBITDA margin: 33%
• Suite profile: 15 suites, 111 to 185 sq. ft., $350 to $490 per week rent range

Outlet B

• Gross revenue: $534,966
• Total key operating expenses: $310,987
• Estimated franchise expenses: $36,573
• EBITDA (if franchised): $187,406
• EBITDA margin: 35%
• Suite profile: 27 suites, 110 to 200 sq. ft., $310 to $545 per week rent range

Average, median, range, quartiles

Using the two visible outlet tables only:

• Average gross revenue: $414,367
• Median gross revenue: $414,367
• Gross revenue range: $293,768 to $534,966
• Average EBITDA (if franchised): $142,359
• Median EBITDA (if franchised): $142,359
• EBITDA range (if franchised): $97,312 to $187,406
• Quartiles: not disclosed

The spread between the two visible outlets is meaningful. The higher-revenue location generated about $241,198 more gross revenue than the lower-revenue location, and it also had substantially higher rent-related expense in absolute dollars. That suggests unit economics may vary materially by size, suite count, occupancy, and local rent structure.

A few cautions are important:

• These figures are from company-owned outlets, not franchisees
• The disclosure references 3 outlets, but only 2 outlet tables are available here, so systemwide averages are not clearly established from the visible data
• The disclosure says some franchise expense figures are estimated
• The disclosure does not clearly establish whether the Item 19 figures are audited
• Revenue is not profit, and EBITDA is not the same as net income, owner earnings, or cash flow after debt service, taxes, and all startup-related costs

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• Model: B2B-oriented operating model inferred from the disclosure
• Revenue pattern: Primarily recurring, since the Item 19 tables show weekly suite rent ranges and annual gross revenue tied to operating a multi-suite facility
• Operations: Physical location-based business with multiple suites, rent obligations, utilities, janitorial, repairs and maintenance, insurance, and technology fees
• Staffing/management: Requires direct full-time supervision by the franchisee or a fully trained and qualified manager
• Infrastructure: Appears facility-heavy and operationally intensive, with meaningful lease exposure

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Advantages

• Item 19 includes actual historical revenue and operating expense data from company-owned outlets
• Revenue appears recurring in nature because the model is tied to suite occupancy and weekly suite rent
• Royalty rate is defined, and the brand fund contribution is currently modest at 1%
• The disclosure states the company-owned outlets operate in materially the same way as franchise outlets

Considerations

• Initial investment is high at $976,650 to $2,221,900
• No franchised outlets were operating as of the issuance date, so there is no franchisee operating history in Item 19
• The royalty includes a $250 per week minimum, which can pressure lower-volume locations
• Occupancy appears important to marketing burden, since local marketing may only be reduced when suite occupancy reaches 75% or greater
• The initial franchise fee is not clearly established from the available figures due to conflicting fee references

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This franchise may fit an investor or operator comfortable with a high-cost, facility-based business that requires active oversight and lease-driven operations. It may also fit someone prepared to manage a multi-suite property model with recurring occupancy management rather than a simpler service business.

It likely does not fit buyers seeking a low-cost entry, passive ownership, or a model with established franchisee operating history already disclosed.

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• The territory is non-exclusive, which can limit geographic protection
• Rent, NNN, and CAM expenses appear to be a major cost center, creating sensitivity to site economics
• The local marketing requirement can add up to 2% of Gross Revenue unless reduced or waived based on occupancy
• The franchise term is 10 years, which creates a long commitment relative to the capital required
• Certain default triggers in the disclosure include non-curable events such as misrepresentation, failure to complete initial training, bankruptcy-related events, abandonment, trademark misuse, unauthorized disclosure, unapproved transfers, or repeated noncompliance

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Beauty Bungalows is a high-investment, location-heavy franchise built around recurring suite revenue, and the Item 19 company-owned results suggest the model can produce materially different outcomes depending on the unit. The main tradeoff is straightforward: potentially recurring top-line revenue and visible operating expense examples, but with substantial upfront capital, lease exposure, active management requirements, and no franchised outlet performance history disclosed.

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