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.
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Initial investment
Here’s what you can expect to spend to start a The Lash Lounge franchise.
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.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
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.
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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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