The Lash Lounge Franchise Costs $378K – $702K (+ 2024 Profits)

The Lash Lounge, founded in 2006, stands as a pioneering franchise in the beauty industry, particularly known for its specialization in semi-permanent eyelash extensions along with other complementary eye- and brow-related services.

The Lash Lounge began to franchise in 2010. Headquartered in Ann Arbor, Michigan, The Lash Lounge has established itself as a leader in providing a low-maintenance beauty routine through its services, which are designed to empower women with confidence while offering a luxury salon experience that is part of its membership model.

The brand also features a private-label cosmetic product line tailored to complement the services available at its salons.

Type of Expenditure	Amount
Initial Franchise Fee	$60,000
Lease Payment (first 3 months)	$12,500 – $16,500
Security Deposits	$4,167 – $9,500
Leasehold Improvements	$127,000 – $319,000
Furniture, Fixtures, Décor, and Equipment	$75,000 – $95,000
Salon Layout, Architect, Engineer, Drawings, and Permits	$10,000 – $26,000
Real-Estate and Construction Management	$5,000 – $20,000
Initial Supplies	$6,900 – $12,500
Outdoor Signage	$8,500 – $18,000
Point of Sale (“POS”) Register, Hardware, Software	$4,400 – $7,600
Initial Cosmetic Inventory Package	$2,000 – $2,500
Pre-opening training expenses (per person)	$8,000 – $10,000
Telephone and Utility Deposits and Expenses	$250 – $500
Marketing (first three months)	$7,000 – $10,000
Business Licenses, Permits, etc. (first year)	$655 – $3,575
Insurance Deposits and Premiums (first three months)	$1,200 – $5,900
Professional Fees (first year)	$800 – $5,500
Additional Funds – (first three months)	$30,000 – $79,000
Total	$378,000 – $702,000

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.

Initial Franchise Fee

For a single salon, the initial franchise fee is set at $60,000, payable in a lump sum when the Franchise Agreement is signed. This fee is deemed fully earned upon payment and is non-refundable.

Royalty Fee

Franchisees are obligated to pay a Royalty Fee of 6% of the Gross Revenue per month. After the second year of operations, a minimum Royalty Fee of $250 per week is applied.

Marketing Fee

A Marketing Fee of 2% of Gross Revenue is due monthly. This fee supports marketing and promotional efforts at a national level.

Local Advertising

Franchisees must commit to spending at least $2,000 per month on local advertising during the first 12 months of operation. After the first year, the requirement adjusts to at least $1,500 per month.

Technology Fee

A monthly Technology Fee, starting at $500 for the first month and then $225 per month per salon, is required for access to the franchisor’s online systems, intra-net, data sharing, and business intelligence platforms.

Development Fee

For those interested in developing multiple salons, the document outlines a Development Fee structure based on the number of units planned. The fees are as follows: $110,000 for two salons and $135,000 for three salons. This fee is payable upon executing the Development Agreement.

Initial Training Fees

Before opening, a mandatory initial training fee of $8,000 is required for the franchisor’s three-stage training program. This fee covers various aspects of business operation and salon management, including a 9-day Business Training session.

Franchise pros and cons

The Pros:

• Explosive growth potential: the franchisor excels in one of the fastest-growing niches in the beauty industry. 
• Recurring revenue model: repeat clients attract recurring revenue. 
• Low cost business: low cost franchise opportunity, meaning only $150,000 in operating capital plus a net worth of $500,000 can get you on your way.  
• Multiple income streams: franchisees earn from semi-permanent eyelash extension services, eyebrow threading, brow and lash tinting, lash lifts, lash fills and product sales. 
• Simple business model: a simple business model relying on the brand’s popularity, strength and stability to grow. 
• No beauty background required: franchisees don’t need a background in the beauty industry to own a studio. The franchisor puts such responsibilities on their highly trained and qualified professionals.
• Marketing assistance: extensive marketing support to help franchisees attract and retain clients. Besides leveraging the brand’s popularity, franchisees work with a corporate team to make a lasting impression on their clients. 
• Initial training: comprehensive training to help with site selection, lease negotiation, field operations, meetings and conventions and security and safety procedures. In-person consultation and a free coaching program help franchisees understand how to run a Lash Lounge franchise. 
• Ongoing support: franchisor support goes beyond the daily operations, with a dedicated team to provide consistent feedback, communication and business analysis to ensure stability.  
• Third-party financial assistance: The Lash Lounge has relations with third-party financial sources to help franchisees cater to the franchise fee, startup costs, equipment and inventory. 

The Cons:

• No absentee ownership: franchisees must be involved in everyday operations. 
• Not a part-time investment opportunity: The Lash Lounge franchise can’t be run part-time or as a side business. 
• Not a home-based opportunity/mobile unit: franchisees must operate from fixed locations within the designated working hours. 
• No exclusive territories: no fixed areas to operate the franchise. Franchisees may face competition from other Lash Lounge franchises. 
• Minimum employee requirement: 6-12 employees to run a Lash Lounge franchise. 
• Competition: Amazing Lash Studio and JJ Eyelashes.

How to open a The Lash Lounge franchise

Opening a The Lash Lounge franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a The Lash Lounge franchise.

1. Initial Inquiry

• Begin by completing a contact form or reaching out to The Lash Lounge’s franchise development team to express your interest in the franchise opportunity.

2. Introductory Meeting

• Participate in an introductory meeting or call to receive a comprehensive overview of the brand, including support systems, the role of the owner, investment details, and key financial figures from the Franchise Disclosure Document (FDD).

3. Review Unit Economics

• Delve into the financial aspects of operating a franchise, focusing on revenue, expenses, and the details provided in Items 7 and 19 of the FDD.

4. Understand Marketing and Operations

• Learn about the grand opening support, ongoing marketing strategies, training programs, software tools, and the operational support provided to franchisees.

5. Validation Process

• Engage in discussions with existing franchisees and participate in a leadership call to gain insights into the franchise experience and review the FDD in detail.

6. Territory Analysis

• Work with The Lash Lounge to conduct a thorough analysis of potential territories, including demographic, psychographic, and competitive landscape evaluations.

7. Discovery Day

• Visit the corporate headquarters or a designated Lash Lounge salon to meet the executive team, tour a salon, and get a firsthand look at the business operations.

8. Franchise Agreement Signing

• Upon mutual agreement, sign the franchise agreement to officially become a part of The Lash Lounge family and begin your journey as a franchisee.

9. Onboarding and Training

• Undergo specialized training sessions designed by The Lash Lounge to prepare you and your team for the grand opening and successful operation of your salon.

Disclaimer

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