Camille Albane Franchise Costs & Fees
Date of Incorporation: 1954
Franchising Since: 1994
Headquarters: Beverly, Massachusetts
Business Description: C.Alb Franchising, Inc. is the franchisor. Camille Albane salons offer a full menu of French hair styling, hair cutting, hair coloring, and related hair and beauty services and the sale to customers of related hair care, hair coloring, cosmetics, beauty products, and other personal grooming products at retail.
Franchise Offer: A franchisee operating under the franchise system will operate a French hair and beauty salon using the franchisor’s marks (such as “Camille Albane” and “Camille Albane Paris”).
Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or part of any financing arrangement of franchisees.
Training and Assistance: The franchisor provides an initial training program to franchisees, their Salon Manager(s) and stylists. Our initial training programs currently include two main phases – our Salon Business Academie and our Salon Technical Training. Both phases must be completed to the franchisor’s satisfaction before franchisees may open their Franchised Salon. The training consists of certain classroom and on the job training. The franchisor also offers an optional phase – the Salon Manager Flagship Immersion for the primary Salon Manager. Other than the non-refundable tuition of $1,500 charged for Salon Business Academie and the $150 training materials fee, the franchisor does not currently charge any tuition or other training costs for the initial training program (including the optional Salon Manager Flagship Immersion). Franchisees are responsible for all travel and living expenses associated with the training. If franchisees ask that the franchisor provide on-site training in addition to that which it may provide to them in connection with the initial training program or the opening of the Franchised Salon, and if the franchisor agrees to do so, then they must pay the franchisor its then-current per diem charges and out-of-pocket expenses. Franchisees’ “Highly Trained Personnel” may also be required to attend such refresher courses, seminars, and other training programs and meet the franchisor’s standards for minimum ongoing operational and technical training as it may reasonably specify from time to time.
Territory: Franchisees will not receive an “exclusive” Territory with their Franchise Agreement. Franchisees will receive certain protected rights within a Protected Territory. Franchisees may face competition from outlets that the franchisor owns or from other channels of distribution or competitive brands that the franchisor controls. The Protected Territory will typically be a circle, the center of which will be the front door of the Franchised Salon, and that circle will have a radius that is specified in the Franchise Agreement. The Protected Territory will be determined by considering many factors relevant to the location of the Salon, including population and demographic information for the area, local competition, and drive times from the Salon.
Term of Agreement and Renewal: The length of the initial franchise term is the earlier of: (a) 10 years from the date the Franchised Salon opens for business; or (b) 11 years from the effective date of the Franchise Agreement. Renewal of the term is for one additional 10 year term, subject to certain contractual requirements.
Obligations and Restrictions: If franchisees are a corporation, partnership or LLC, they must appoint an individual (who must be one of the owners) as the “Managing Member.” The Managing Member will have overall responsibility for the Franchised Salon and be the primary contact regarding the Franchised Salon, and must complete the training program, have authority over all business decisions related to the Franchised Salon, and have the power to bind the franchisee in all dealings with the franchisor. The Franchised Salon must be under the active full-time day-to-day management of either franchisees, the Managing Member (if a corporation or a partnership) or a Salon Manager who has successfully completed (to the franchisor’s satisfaction) the initial training program.
Estimated Number of Units: 300
|Name of Fee||Low||High|
|Initial Franchise Fee||$20,000||$40,000|
|Travel and Living Expenses For Franchisees and Their Employees During Training||$1,500||$3,000|
|Leasehold Improvements/General Construction (including architectural fees)||$55,000||$120,000|
|Initial Product Inventory||$15,000||$25,000|
|Shampoo Stations and Chairs||$15,000||$20,000|
|Other Furniture Fixtures, and Equipment||$40,000||$60,000|
|Salon Supplies – Non Technical||$20,000||$25,000|
|Advertising (first 90 days)||$20,000||$30,000|
|Additional Funds – 3 Months||$38,000||$55,000|
|Type of Fee||Amount|
|Royalty||5% of Gross Sales per week.|
|Marketing Contribution||3% of Gross Sales per week.|
|New Franchisee Training||$1,500 (but the franchisor will reduce the fee to $1,000 per additional individual if they attend training in the same place and at the same time).
There is also an additional $150 materials fee per trainee.
|New Franchisee Replacement Training||$1,500 (but the franchisor will reduce the fee to $1,000 per additional individual if they attend training in the same place and at the same time).
There is also an additional $150 materials fee per trainee.
|Additional Training||The franchisor’s then-current standard training fee for these programs and its reasonable out-of-pocket expenses.|
|eLearning Fee||Up to $25 per week.|
|Fees Relating to POS and Computer System and Software||If the franchisor provides computer or communications equipment, software or assistance or services, it may charge a reasonable fee. At this time, third parties provide these services directly to franchisees.|
|Transfer Fee||$10,000 or 25% of the then current Initial Franchise Fee, whichever is greater.|
|Renewal Fee||$10,000 or 25% of the then current Initial Franchise Fee, whichever is greater.|
|Supplier Testing Fee||Up to $2,000|
|Finder’s Fee||$5,000 or 5% of total consideration.|
|Interest on Late Payments||18% per year on the overdue payment.|
|Attorney’s Fees and Costs||Varies.|
|Audit Costs||All costs and expenses associated with the audit, reasonable accounting and legal costs; and interest on the underpayment.|
|Recurrent Inspection||Time plus expenses.|
|Indemnification||Will vary under circumstances.|
|Securities Offering Fee||$7,500 or our actual expenses, whichever is greater, when franchisees issue their securities. After initial offering, franchisees must simply reimburse the franchisor for its costs of reviewing later submissions, filings, etc.|
|Liquidated Damages||Will vary under circumstances.|
The above information has been taken from the FDD of Camille Albane. Year of FDD: 2016
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