Franchising Since: 2013
Headquarters: Englewood, Colorado
Estimated Number of Units: 200
Franchise Description: The franchisor is Amazing Lash Franchise, LLC. The franchisor a wholly owned subsidiary of WBZ Investment LLC, which is wholly owned by WBZ Holdings II, LLC. WBZ Holdings II is owned by the following: KSL Capital Partners III, L.P., KSL Capital Partners III TE, L.P., KSL Capital Partners III TE-A, L.P. and KSL Capital Partners III FF, L.P., which are the franchisor’s ultimate parents. The franchise being offered is a retail salon business utilizing the “Amazing Lash Studio” name and offering luxury, semi-permanent, and temporary eyelash services, eyebrow services, facial hair removal, facial and beauty treatments, and related products and services.
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Territory Granted: After franchisees locate a site acceptable to the franchisor, it will grant a “protected area” around that site. The franchisor will typically define the boundaries of a protected area as a circle with the studio at its center and a radius of 1.5 miles. But, in some cases (for instance in densely populated urban areas), the franchisor may define the boundaries of the protected area by political subdivisions, streets, ZIP codes, or other similar designations, and the protected area in that case may be the lesser of: (i) a circle with a 1.5-mile radius; or (ii) a circle with a radius reflecting a 50,000 person population density. The franchisor determines the boundaries of each protected area on a case-by-case basis based on various factors. If franchisees remain in compliance with the Franchise Agreement, the franchisor will not own or operate, or authorize any person or entity to own or operate, studios in the protected area.
Obligations and Restrictions: If franchisees are signing the Franchise Agreement as a legal business entity, they must designate an individual with at least a 25% ownership and voting interest in the franchise to serve as the “operating partner.” The operating partner must be approved by the franchisor. Franchisees and such persons the franchisor designates, which may include the spouses of the owners (if signing the Franchise Agreement as a business entity), must execute the Guaranty and Assumption of Franchisee’s Obligations. Franchisees must sell or offer for sale all products and services the franchisor requires using the method and manner of distribution it prescribes. Franchisees must conduct all services in accordance with the franchisor’s system standards.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional 10-year term is available if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation. The franchisor offers a 20% discount on the initial franchise fee for veterans and active-duty members of the United States armed forces or members of a minority race or ethnicity (Black, Hispanic, Asian, Pacific Islander, or American Indian/Alaska native) who will hold at least a 51% ownership interest in the studio to be developed and operated under a Franchise Agreement.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $50,000 | $50,000 |
Real Property & Utility Security Deposits | $2,900 | $18,650 |
Leasehold Improvements (net of landlord tenant allowances) | $220,550 | $380,000 |
Cabinetry & Millwork, Furniture and Décor | $23,500 | $32,000 |
Initial Opening Package | $38,000 | $45,000 |
Initial Software Set-Up and Technology Fees | $1,474 | $1,474 |
Computer System and Other A/V Technology | $20,830 | $29,500 |
Training Program and Other Training Expenses | $6,350 | $7,750 |
Architect, Engineer, Drawings | $12,500 | $18,500 |
Grand Opening Spend Requirement | $20,000 | $20,000 |
Signage and Graphics | $6,600 | $15,000 |
Office and Business Supplies | $3,630 | $5,500 |
Business Licenses & Permits | $1,050 | $13,200 |
Insurance (initial 20% payment) | $1,100 | $1,300 |
Professional Fees | $1,980 | $13,350 |
Additional Funds (3 months) | $54,000 | $87,000 |
ESTIMATED TOTAL | $464,464 | $719,754 |
Other Fees
Type of Fee | Amount |
Royalty Fee | 6% of gross receipts. |
Brand Marketing Fund | 2% of gross receipts. |
Local Advertising Fee | $2,000 per month. |
Local Spend Amount | 2% of gross receipts. |
Default Fee | $250 - $2,500 |
Dishonored Check or Insufficient Funds Fee | $150 |
Interest on Late Payments | 1.5% per month or highest commercial rate. |
Monthly Management Fee (in event of the franchisee’s abandonment, default, or termination) | Up to $7,500 per month plus direct out-of-pocket expenses. |
Replacement or Remedial Training Program Fee | Then-current fee, currently $500 per attendee, plus costs and expenses. |
Additional or Special Training | Then-current fee, currently $500 per day per trainer or attendee (as applicable to the training program), plus costs and expenses. |
Annual Conference Registration Fees | Then-current annual meeting registration fees for at least one attendee (currently, $500 per person), plus costs and expenses. Default fee applies for non-attendance. |
Manager Training Program | Then-current fee, currently $500 per day per attendee, plus costs and expenses. |
Technology Fee | Currently, $500 per month. |
Marketing Cooperatives | As established (existing marketing cooperatives charge between $500 and $1,000 per month)). |
Successor Franchise Fee | 25% of the then-current initial franchise fee. |
Transfer Fee – Franchise Agreement | 50% of the then-current initial franchise fee; reduced to $2,500 for select ownership interest transfers. |
Transfer Fee Deposit | $5,000 |
Inventory | Varies according to products purchased. |
Royalty Underpayments (audit) | Varies. Difference between the amount reported and correct amount, plus applicable interest (and if understated amount is more than 2%, plus the franchisor’s costs (including attorneys’ and accountants’ fees)). |
Defense or Enforcement Costs | All costs including attorneys’ fees (variable). |
Indemnification | All costs including attorneys’ fees (variable). |
Collection Costs | Actual costs and expenses to collect past due or other amounts. |
Arbitration and Proceeding Costs | The franchisor’s arbitration or other court costs plus attorneys’ fees and costs if it prevails in the arbitration or proceeding. |
Liquidated Damages | An amount equal to the combined monthly average of royalties, brand marketing fund contributions, and any other fees under this agreement (without regard to any fee waivers, or other reductions) payable during the 36 months preceding the date of early termination, multiplied by the lesser of (i) 36 or (ii) the number of full months remaining in the term. The present value of the total calculated at a discount rate of 8%, assuming payment at the end of each month, will be the franchisor’s liquidated damages. |
Alternative Supplier Evaluation | Varies according to administrative expenses in evaluating the request and its complexity. |
Relocation Fee | $10,000, plus costs and fees associated with migrating clients to nearby studios. |
LST Program Fee | Then-current training fee ($500 per day per attendee), plus costs and expenses. |
Quality Assurance Inspections | Actual costs and expenses. |
In-House Legal Billing Rates | Then-current hourly billing rate for in-house attorneys (currently, $400 per hour) and paralegals (currently, $150 per hour). |
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