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Regal Nail Salon & Spa Franchise Costs, Fees & Profits

Regal Nail Salon & Spa Franchise Costs, Fees & Profits (2024)

Here’s what you need to know if you’re interested in opening a Regal Nail Salon & Spa franchise.

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

585

INITIAL INVESTMENT

$173,000 – $760,000 

ROYALTY FEE

up to 12%
revenue

REVENUE PER YEAR

$0

Regal Nails Salon & Spa, established in 1997, is headquartered in Baton Rouge, Louisiana. The inception of its first salon took place within a Kmart in Brooklyn, Ohio, marking a significant milestone in its history. This was closely followed by the launch of another salon inside a Wal-Mart in Shreveport, Louisiana. Over the years, Regal Nails has expanded significantly, positioning itself as the largest nail salon franchisor in the United States.

It started offering franchise opportunities in 2005, ushering in a new era of growth and expansion for the brand. Regal Nails differentiates itself in the market through a strong commitment to customer service, innovation, and salon hygiene.

They were pioneers in the industry by enforcing strict hygiene standards, such as the use of hospital-grade disinfectants and autoclaves for sterilization, to ensure a safe environment for their clients. Furthermore, they are recognized for their efforts in constantly evolving by introducing new business models, products, equipment, designs, and services to enhance the customer experience.

Number of locations

TOTAL UNITS
585
FRANCHISED UNITS
584

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Initial investment

INITIAL INVESTMENT
$173,000 $760,000 
Type of ExpenditureAmount
Snow White Package$150,000 to $545,000
Pro-rata CGL and PL and limited Property Insurance$1,000 to $8,000 per year
First Full and Final Months’ Monthly Fee$1,000 to $30,000
Second and Third Month’s Monthly Fee$1,000 to $30,000
Rental Tax$0 to $2,000
Pro-Rata Monthly Fee for month of salon opening$0 to $15,000
Monthly Utility Charge and/or CAM$600 to $4,000
Security Deposit$1,000 to $32,000
POS Subscription Fee for 3 months$0 to $1,000
Joint Merchant Services Solution and POS System Hardware$1,000 to $2,000
Workers Compensation Insurance and Employer’s Liability Insurance$0 to $1,000
Licenses, Certificates of Occupancy, Occupational Licenses, d/b/a, etc.$0 to $1,000
Additional Equipment, Furnishings and/or Supplies$0 to $27,000
Travel & living expenses for Training Class$0 to $3,000
Miscellaneous Opening Costs$0 to $1,000
Additional Funds (3 months)$12,000 to $15,000
Sales/ License Taxes$0 to $5,000
Application Fee$0 to $500
Insurance Handling Charge$0 to $100
Total$173,000 to $760,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

ROYALTY FEE
up to 12%

Initial Franchise Fee

The Initial Franchise Fee is $25,000. This fee is fully earned and payable in one lump sum when signing the Franchise Agreement and, if applicable, the Site Deposit Addendum.

Snow White Package

The Snow White Package costs between $150,000 and $545,000. It includes a custom-built, equipped nail salon with furniture, fixtures, signs, equipment, start-up supplies, an initial inventory, and Regal Nails Salon & Spa décor, based on a 400 sq. ft. salon.

Monthly Fee

The Monthly Fee ranges from $1,000 to $30,000. It includes the monthly franchise fee and the base rent for the premises if the franchisor is a party to the lease.

Security Deposit

The Security Deposit ranges from $1,000 to $32,400. It equals the last two months’ Monthly Fee plus two months’ Monthly Utility Charge and/or Common Area Maintenance (CAM), as applicable.

Pro-Rata Monthly Fee

The Pro-Rata Monthly Fee ranges from $0 to $14,517 for the earlier of the month in which salon operations begin or the month in which rent commences, calculated from the Payment Commencement Date until the first day of the succeeding month.

Monthly Utility Charge and/or CAM

The Monthly Utility Charge and/or CAM ranges from $200 to $1,200 per month for locations where the franchisor is a party tenant to the lease, if the landlord charges these fees.

Rental Tax

The Rental Tax can be as much as $800 per month, currently applicable only in Florida and Arizona, but this is subject to change.

Additional Furniture, Fixtures, and Equipment

The cost for additional or substitute items ranges from $0 to $27,249. These are for items ordered from the franchisor or its affiliate Alfalfa, in addition to or as upgrades to items in the Snow White Package.

Sales Taxes

Sales Taxes may range from $3,000 to $5,000. These are for goods or services furnished through sale, lease, or otherwise, or on account of collection by the franchisor of the Initial Franchise Fee or other fees called for by the Franchise Agreement.

Profits

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How to apply

1. Conduct Preliminary Research

  • Start by gathering information about the Regal Nails Salon & Spa franchise.
  • Visit the official Regal Nails website and review the franchising section to understand the business model, brand values, and customer service philosophy.
  • Consider visiting existing Regal Nails locations to observe operations, services offered, and customer interactions.

2. Submit an Inquiry

  • Fill out the franchise inquiry form available on the Regal Nails franchising webpage.
  • Provide detailed and accurate information to facilitate effective communication with the franchisor.
  • Await a response from Regal Nails, which may include additional information or an invitation to discuss franchising opportunities.

3. Review Franchise Disclosure Document (FDD)

  • Once you receive the Franchise Disclosure Document, review it thoroughly.
  • Pay special attention to the sections detailing financial requirements, franchise fees, ongoing royalties, and any legal obligations.
  • Consult with a franchise attorney or advisor to better understand the terms and conditions of the franchise agreement.

4. Secure Financing

  • Assess your financial readiness and consider the total investment required, which includes the franchise fee, setup costs, and operational expenses.
  • Explore financing options, if necessary, such as bank loans, Small Business Administration (SBA) loans, or franchisor financing programs, if available.
  • Prepare a solid business plan to present to potential lenders, highlighting the market potential, revenue projections, and strategic plans for your Regal Nails franchise.

5. Choose a Location

  • Work with Regal Nails to identify a suitable location for your salon, considering factors such as foot traffic, demographics, and competition.
  • Follow the franchisor’s guidelines and approval process for selecting and securing a location.
  • Engage in lease negotiations and site development with the assistance of Regal Nails, ensuring that the chosen site meets brand standards and operational requirements.

6. Complete Training Program

  • Participate in Regal Nails’ comprehensive training program designed for new franchisees, covering operational procedures, service standards, and business management.
  • Ensure that you and your staff undergo any necessary certifications or licensing as required by local regulations for nail and beauty salons.
  • Utilize the training period to familiarize yourself with Regal Nails’ products, equipment, and customer service protocols.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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