Beauty Bungalows franchise unit economics
Beauty Bungalows franchisees lease a large space, divide it into salon suites and rent the suites to beauty professionals for suite license and reservation fees.
Beauty Bungalows franchise at a glance
In its 2026 FDD Beauty Bungalows reports 2025 revenue, rent and operating costs for five outlets, with suite counts and the margin each kept after brand charges.
Item 19 of Beauty Bungalows’ 2026 FDD, issued 6 March 2026, shows five Beauty Bungalows outlets that billed $293,990 to $552,701 in 2025, on 15 to 31 suites. Beauty Bungalows’ four company outlets average $393,731 of revenue. Fees paid to Beauty Bungalows come to about 6.96%* of sales. A Beauty Bungalows franchise costs $941,650 to $1,961,900 to open.
- Opening a Beauty Bungalows outlet costs $941,650 to $1,961,900, including a $49,900 initial franchise fee.
- Beauty Bungalows charges the greater of 5.5% of gross revenue or $250 a week, 1% to a brand fund and $150 a month for technology.
- After operating costs and the brand charges, the five outlets kept 33% to 42.9% of revenue.
These figures come from Beauty Bungalows's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Beauty Bungalows Conversion Package →Every outlet pays a landlord and re-lets the same space in pieces. The five here collect $1.98 to $3.00 for each dollar of rent they pay *.
- Rent runs 33.3% to 50.6% of revenue.$122,964 to $264,946 a year, and at one outlet it is 70.4% of every operating cost combined *.
- The mark-up on rent is higher where rent is lower.The two outlets paying $46 to $50 a square foot collect 2.0 times their rent; the three paying $19 to $21 collect 2.7 to 3.0 times *.
- Four of the five outlets carry no payroll.The only labour line anywhere is a single $16,300 area manager.
- Building the suites is 72% to 79% of the cost.$675,000 to $1,553,000 of leasehold improvements, which works out at $37,666 to $49,048 a suite all in *.
- The published margins assume the suites are 75% full.The 2% local marketing requirement is waived at that occupancy, so below it every figure drops about 2 points *.
Rent paid and collected, 2025
| Outlet | Suites | Square feet | Rent paid | Rent a square foot * | Revenue | Collected per rent dollar * |
|---|---|---|---|---|---|---|
| Downtown Huntington Beach, 2017 | 15 | 3,000 | $148,816 | $49.61 | $293,990 | $1.98 |
| Huntington Beach, 2022 | 27 | 5,700 | $264,946 | $46.48 | $552,701 | $2.09 |
| Clovis, 2023 | 29 | 6,000 | $127,015 | $21.17 | $343,946 | $2.71 |
| Roseville, 2024 | 31 | 7,000 | $135,664 | $19.38 | $384,287 | $2.83 |
| The franchised outlet, part year | 29 | 6,090 | $122,964 | $20.19 | $369,385 | $3.00 |
The franchised outlet traded from 16 March to 31 December 2025, so its figures cover nine and a half months *.
Lower rent comes with a higher mark-up. Clovis, Roseville and the franchised outlet pay $19 to $21 a square foot and collect 2.7 to 3.0 times it; the two Huntington Beach outlets pay $46 to $50 and collect 2.0 to 2.1 times *. Suite rents follow the local market, so an expensive lease compresses the spread on both sides at once.
Per suite the operator pays $4,240 to $9,921 and collects $11,860 to $20,470 *. The gross spread runs $7,480 to $10,657 a suite a year *, and a 30-suite outlet therefore carries roughly $225,000 to $320,000 of gross spread before everything else *.
Revenue per square foot is $55 to $98 *, and it tracks the rent almost exactly. The premium markets bill more and pay more; the value markets bill less and keep more of it.
Smaller outlets bill more per square foot. The 3,000 square foot outlet with 15 suites bills $98.00 a foot; the 7,000 square foot outlet with 31 suites bills $54.90 *.
Occupancy sets the marketing charge. The brand waives the 2% local marketing requirement once an outlet reaches 75% suite occupancy. Every empty suite carries its share of the rent, the utilities and the janitorial while earning zero.
Outlet profit and loss, 2025
| Line | Huntington Beach downtown | Huntington Beach | Clovis | Roseville | Franchised, part year |
|---|---|---|---|---|---|
| Gross revenue | $293,990 | $552,701 | $343,946 | $384,287 | $369,385 |
| Rent and outgoings | $148,816 | $264,946 | $127,015 | $135,664 | $122,964 |
| Janitorial | $7,280 | $20,100 | $14,540 | $22,080 | $12,953 |
| Utilities | $9,292 | $20,184 | $19,982 | $15,270 | $15,327 |
| Manager | $0 | $0 | $16,300 | $0 | $0 |
| Advertising | $167 | $357 | $12,042 | $6,415 | $26,147 |
| Everything else | $6,018 | $12,974 | $15,895 | $13,206 | $16,983 |
| Total operating costs | $171,573 | $318,561 | $205,774 | $192,635 | $194,374 |
| Brand charges | $20,854 | $37,726 | $24,156 | $26,779 | $25,510 |
| Margin after both | 34.5% | 35.54% | 33% | 42.9% | 40.5% |
These margins leave out tax, interest, depreciation, any reserve for refitting the suites and the 2% of local marketing that applies below 75% occupancy *.
Rent is 70.4% of everything the Roseville outlet spends * and 86.7% at the downtown Huntington Beach one *. Janitorial, utilities and insurance make up almost all of the rest. Cost of goods is zero, payroll is close to it, and the equipment sits in the suites with no replacement cycle.
Four of the five outlets ran with a manager line of zero. The Clovis outlet carries a $16,300 area manager and posts the lowest margin of the five at 33%. Every other margin on this page is an owner-operator figure, so subtract a manager’s salary before comparing it with a business you intend to hire for.
Roseville has the highest margin and is the newest outlet. Open since October 2024, 31 suites at $19.38 a square foot, 42.9% margin. The two oldest outlets, in the most expensive market, post 34.5% and 35.54%.
The advertising line moves 157 times across the five. $167 at the downtown outlet against $26,147 at the franchised one *. A mature outlet at full occupancy stops advertising entirely; a new one spends 7.1% of revenue filling suites *.
The franchised outlet annualises to $188,843 of margin *, from $149,501 over nine and a half months. It pays the royalty a franchisee pays.
One royalty figure prints low. The downtown outlet’s 5.5% shows as $16,114.45 where 5.5% of $293,990 is $16,169.45 *, a $55 difference that carries through its total and its margin. Every other outlet’s arithmetic reconciles to the cent.
Latest
Retail rents rose 2.4% while availability held at 4.9%
United States retail availability held at 4.9% in the second quarter of 2026 with average asking rents at $24.79 a square foot, up 2.4% year on year. For a business paying $19.38 to $49.61 a square foot * and re-letting the same space, a 2.4% rent move is worth 0.8 to 1.2 points of margin *, and it is locked in for the length of the lease you sign today.
The median specialty salon fills 47% of its capacity
Salon operating data published 29 April 2026 put median utilisation at 47% for specialty salons against 79% for top performers, with new guests down 7% while existing guests rose 4%. A suite landlord’s occupancy depends on tenants whose own businesses are running at those levels.
Hair salons are a $63.4 billion trade across 1.06 million establishments
Industry statistics updated 15 September 2026 put the US hair salon market at $63.4 billion across roughly 1.06 million establishments, most of them very small, with typical net profit near 8%. That fragmentation is the tenant base: a suite operator is selling to the million-odd independents who would otherwise sign their own lease.
Sources: CBRE US Retail Figures, Q2 2026 · Salon trends and operating benchmarks, 29 April 2026 · Salon industry statistics, updated 15 September 2026
Top performers
What separates the top Beauty Bungalows performers
Five Beauty Bungalows outlets billed $293,990 to $552,701 in 2025. The Huntington Beach outlet billed the most and the downtown Huntington Beach outlet billed the least.
- Rent per square foot.Beauty Bungalows outlets in Clovis and Roseville and the franchised outlet pay $19 to $21 a square foot in rent and collect 2.7 to 3.0 times it. The two Huntington Beach outlets pay $46 to $50 a square foot and collect 2.0 to 2.1 times it *.
- Margin after costs and brand charges.Roseville kept 42.9% of revenue after operating costs and brand charges, the highest of the five Beauty Bungalows outlets. Clovis kept 33%, the lowest, and it is the only outlet that pays a manager, at $16,300.
- Advertising.Beauty Bungalows advertising ran from $167 at the downtown Huntington Beach outlet to $26,147 at the franchised outlet in 2025.
Top performers
How far apart the locations are
The highest-revenue Beauty Bungalows outlet, Huntington Beach at $552,701, billed 1.88 times the lowest, downtown Huntington Beach at $293,990 *. The franchised outlet’s $369,385 covers nine and a half months of 2025. The outlet figures are in the tables on the Model tab.
Brand charges
| Charge | Amount | On the average company outlet * |
|---|---|---|
| Royalty | Greater of 5.5% of gross revenue or $250 a week | $21,655 |
| Local area marketing | Up to 2%, waived at 75% suite occupancy | $0 to $7,875 |
| Brand fund | 1% of gross revenue, raisable to 2% | $3,937 |
| Technology fee | $150 a month | $1,800 |
| Total at full occupancy | 6.5% plus $1,800 | $27,392, or 6.96% |
| Total below 75% occupancy | 8.5% plus $1,800 | $35,267, or 8.96% |
The four company outlets average $393,731 of revenue, and a marketing cooperative, once formed, can take up to 2% which counts toward the local requirement *.
The brand charge is 6.96% at full occupancy *, and rent already takes a third to a half of revenue. Below 75% occupancy the 2% marketing requirement switches on and the load reaches 8.96% *.
The royalty minimum applies below $236,364 of revenue *. $250 a week is $13,000 a year, which on a half-full 30-suite outlet billing $180,000 works out at 7.2%, against 5.5% *. The floor and the marketing switch bite together, on the same outlet, in the same year.
Applying the 2% to the lowest-margin outlet costs $6,879 and two points. The Clovis outlet’s 33% becomes 31.1% *. Every margin on this page was calculated with the requirement waived, so read them as full-occupancy figures. They are not steady-state figures.
The brand fund can double. 1% today with a 2% ceiling, which on the average outlet is a further $3,937 a year *. Taken with the marketing switch, the maximum is 10.5% plus $1,800, or $43,142 on the average outlet *, against $27,392 today.
Cost to open
| Line | Low | High |
|---|---|---|
| Leasehold improvements | $675,000 | $1,553,000 |
| Furniture, fixtures and equipment | $100,000 | $150,000 |
| Initial franchise fee | $49,900 | $49,900 |
| Architecture and design | $30,000 | $30,000 |
| Additional funds, three months | $25,000 | $50,000 |
| Pre-opening and grand opening marketing | $22,000 | $24,000 |
| Rent and security deposit | $20,000 | $60,000 |
| Signage | $10,000 | $20,000 |
| Business licences and permits | $4,000 | $10,000 |
| Professional fees | $3,500 | $5,000 |
| Insurance | $1,000 | $1,500 |
| Computer systems | $500 | $1,000 |
| Office expenses | $500 | $1,000 |
| Utilities | $250 | $3,500 |
| Travel and living to training | $0 | $3,000 |
| Total | $941,650 | $1,961,900 |
Both columns add exactly to the printed totals, checked line by line *.
$49,900 reaches the brand, which is 5.3% of the lowest-cost build *. Everything else goes to contractors, the landlord and the fit-out.
Building the suites is most of the investment. Leasehold improvements and fixtures are $775,000 to $1,703,000, or 82.3% to 86.8% of the build *. Across the specified 25 to 40 suites that is $37,666 to $49,048 a suite all in *, two to four years of what a suite collects.
Payback runs about five years on the franchised outlet’s run rate *, $188,843 annualised against $941,650, before tax, interest and the owner’s own pay. Against the average company outlet’s $144,216 it is 6.5 years *.
Three months of additional funds at $25,000 to $50,000 covers a period when the suites are still filling. Suites let one at a time, and the franchised outlet spent $26,147 on advertising in its first nine and a half months filling them. Hold twelve months of rent, because rent starts on day one and stays whole whatever the occupancy.
Buying several outlets lowers the fee to $30,000. A second franchise costs $40,000, a third $35,000 and a fourth $30,000, with the cumulative development fee reaching $154,900 for four against $199,600 at the single-unit rate *. The minimum development commitment is two.
Questions
How much does a Beauty Bungalows franchise make?
Item 19 of Beauty Bungalows’ 2026 FDD, issued 6 March 2026, shows five Beauty Bungalows outlets that billed $293,990 to $552,701 in 2025, on 15 to 31 suites. Beauty Bungalows’ four company outlets average $393,731 of revenue. Fees paid to Beauty Bungalows come to about 6.96%* of sales. A Beauty Bungalows franchise costs $941,650 to $1,961,900 to open.
What should an outlet bill?
The five reporting outlets billed $293,990, $343,946, $369,385, $384,287 and $552,701, on 15 to 31 suites. Per suite that is $11,860 to $20,470 *, and the higher figures belong to the expensive California markets where the rent is higher too.
What does an owner keep?
33% to 42.9% of revenue after operating costs and the brand charge, $101,563 to $196,414. Four of the five outlets show a manager line of zero, so those are owner-operator figures. All of them assume 75% suite occupancy, below which the 2% local marketing requirement takes about two more points *.
What actually drives the result?
The gap between what you pay a landlord and what you collect from tenants. The five outlets collect $1.98 to $3.00 for each dollar of rent *, and the three in lower-rent markets collect the most per rent dollar. Rent is 33.3% to 50.6% of revenue and up to 70.4% of every operating cost *.
How much of sales goes to the brand?
6.96% at full occupancy, 5.5% royalty, 1% brand fund and $1,800 of technology, and 8.96% once the 2% local marketing requirement applies *. The royalty has a $250 weekly floor that binds below $236,364 of annual revenue *, and the brand fund can double to 2%.
Why is the build so large?
The build is large because 25 to 40 individually finished suites have to be constructed inside a 5,500 to 8,000 square foot shell. Leasehold improvements and fixtures are $775,000 to $1,703,000, or 82% to 87% of the whole build *. Per suite that is $37,666 to $49,048 *, which a suite takes two to four years to earn back on its own.
How big is the system?
Six outlets: four company-owned and two franchised, both of the franchised ones opened during 2025. Nine agreements are signed with the outlet still to open, six of them in California, and eight openings are projected for next year. One franchised outlet was left out of the figures for trading under six months.
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Every figure here comes from Beauty Bungalows Franchising, LLC’s 2026 Franchise Disclosure Document and is unaudited by us, we are unaffiliated with the brand, calculations of our own are marked with an asterisk where they appear, the figures describe past performance at other businesses and are not a projection of yours, and this page is an educational summary. It is not an offer to sell a franchise or financial, legal or tax advice. Beauty Bungalows® is a registered trademark of its owner.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Beauty Bungalows Franchising, LLC, 2026 Franchise Disclosure Document, issued 6 March 2026.