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Beauty Bungalows
Beauty Bungalows franchises allow operators to develop and manage facilities that provide turn-key, high-end salon studios rented to independent beauty professionals such as hairstylists, nail technicians, estheticians, and massage therapists. Franchisees lease or purchase commercial space (typically 5,500-8,000 sq ft), build it out into individual studios equipped with premium amenities, and handle operations including maintenance, cleaning, laundry, Wi-Fi, and booking systems. The business model targets salon and wellness professionals seeking private, upscale workspaces, competing in the moderately to highly competitive salon suite rental market.
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Franchise Costs
5.5% royalty (min $250/week) + 1% brand fund (up to 2%) + $150/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: Data from 1 franchised outlet operating in Vista, California from March 16, 2025, to December 31, 2025.
* Gross Revenue, EBITDA, and EBITDA Margin were extracted directly from the 'Part V - Franchise Outlet #1' section on page 7. The reported EBITDA ($149,500.97) was verified by subtracting Total Key Operating Expenses ($194,374) and Total Franchise Expenses ($25,510.03) from Gross Revenue ($369,385), which yielded $149,500.97. The EBITDA Profit Margin (40.5%) was verified by dividing EBITDA by Gross Revenue ($149,500.97 / $369,385 ≈ 0.4047). No explicit gross profit, net income, or net profit figures were provided, nor was a range for profit estimation.
Extracted Item 19 Section
Avg. Revenue: $369,385
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Unlock financial performance dataBeauty Bungalows Franchise Analysis
The salon suite rental sector is exploding as beauty pros crave private, upscale spaces away from traditional salons. Beauty Bungalows pitches a premium, hands-off model where franchisees build out studio complexes and manage the backend. Item 19 earnings data paired with sparse SBA financing history raises eyebrows—is this 2021-launched brand a hidden gem or a high-risk bet in a crowded field?
Item 7 lays out a steep entry: $941,650 to $1,961,900 total investment, including a $49,900 franchise fee, driven by real estate acquisition or lease (5,500-8,000 sq ft) and buildout costs for high-end studios. Ongoing fees from Item 6 hit 5.5% royalty (minimum $250/week), 1% brand fund (capped at 2%), and $150/month tech fee. Item 19 reveals average gross revenue of $369,385 across units, but EBITDA margin clocks in at a stark 0%—meaning after expenses, there's no profit cushion disclosed, signaling tight operations or underperformance in this nascent system with only 2 franchise and 4 corporate locations.
System health metrics paint a cautious picture: franchising since 2021 with just 2 franchises open, yet projecting 8 new units soon. Two SBA loans average $1,143,400, hinting lenders see potential but data is limited. High upfront capital and zero margins make this a gamble for investors eyeing beauty services—strong revenue per sq ft could scale, but execution risks loom large without proven profitability.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Beauty Bungalows Compares
Key Insights
- Higher investment than 98% of Beauty & Spa Services franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Beauty Bungalows Current | $942K – $2.0M | $50K | 5.5% | 2 |
| SPORTS CLIPS (SINGLE UNIT) | $237K – $581K | $30K | 6.0% | 1,702 |
| SUPERCUTS | $186K – $323K | $40K | 6.0% | 1,701 |
| DaVi Nails and Em Lash Studio | $61K – $144K | $65K | N/A | 400 |
| PALM BEACH TAN | $648K – $1.1M | $30K | 6.0% | 397 |
| DAVI NAILS | $57K – $125K | $65K | 0.0% | 387 |
Beauty & Spa Services Average 52 franchises | $413K – $743K | $48K | 6.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 52 Beauty & Spa Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Beauty Bungalows franchisees (2025 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
2 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
13 franchisee contacts on file from official FDD filings.
13 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Beauty Bungalows franchise ranges from $941,650 to $1,961,900. This includes a franchise fee of $49,900. Ongoing royalty fees are 5.5% of gross sales.
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