Franchising Since: 2018
Headquarters: Thornton, Colorado
Estimated Number of Units: 15
Franchise Description: The franchisor is Lash and Company Franchising, LLC. The franchisor offers franchises for the establishment of spa businesses known as Lash and Company spas where franchisees operate the spa business and engage the services of a professional corporation (PC) or other entity that will employ and control any medical professionals who perform medical services in the spa. Lash and Company spas specialize in eyelash extensions, injectables, skin rejuvenation, hair removal, permanent make-up, tinting, waxing, airbrush tanning and related medical grade esthetic services and procedures.
Training Overview: The franchisor will provide an initial training program which may be conducted at its corporate headquarters, at the franchisee’s Lash and Company spa location, via an online classroom, live video conference or other electronic means. The initial training program may include reading materials or self-study, verbal instruction, computerized slides, videotaped or written materials as part of the classroom training, plus on-the-job training in a Lash and Company spa. Franchisees or their Spa Manager may be required to attend, at their expense, a national convention (once each calendar year) or a manager retreat which may include mandatory training sessions (twice each calendar year).
Territory Granted: Franchisees will be granted a protected territory which will consist of a geographic area around the spa location, within which the franchisor will not operate or grant any franchises for the operation of other Lash and Company spas, subject to the franchisor’s reservation of rights. The protected territory for the spa will typically be defined as a radius of five miles around the spa location, or more or less of a radius depending on the demographics in the area.
Obligations and Restrictions: If franchisees (or their managing partner or shareholder) do not participate in the day-to-day operation of the franchised business, they will need to designate a qualified manager to be responsible for the direct on-premises supervision of the franchised business at all times during its hours of operation. Franchisees must provide all services and products at the spa that the franchisor specifies from time to time. Franchisees must further ensure that the PC offers the medical-related services and products at the spa that the franchisor specifies from time to time. The PC for the spa will employ and control the licensed medical professionals who will provide the medical-related services required to be delivered through the spa. Franchisees may not provide any actual
medical-related services, nor will they supervise, direct, control or suggest to the PC or its licensed medical professionals or employees the manner in which the PC may provide medical-related services (unless the franchisee and the franchisor sign an Amendment to Waive Management Agreement).
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for a term in the then-current Franchise Agreement, if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease, or other obligations.
Investment Tables:
The above information has been compiled from the FDD of Lash and Company. Year of FDD: 2022.
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| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Leasehold Improvements | $60,000 | $200,000 |
| Equipment, Furnishings and Electronics | $60,000 | $165,000 |
| Opening Inventory and Supplies | $10,000 | $20,000 |
| Office Computers, POS System and Software | $3,500 | $6,000 |
| Initial Training Expenses | $3,000 | $5,000 |
| Security Deposits, Utility Deposits, Business Licenses | $5,000 | $12,000 |
| Grand Opening Marketing Campaign | $5,000 | $5,000 |
| Insurance Premiums | $2,500 | $4,500 |
| Additional Funds – 3 Months | $35,000 | $95,000 |
| ESTIMATED TOTAL | $229,000 | $557,500 |
| Type of Fee | Amount |
|---|---|
| Royalty | 6% of gross sales. |
| National Marketing Fund Contributions | Currently 1% of gross sales; up to a maximum of 2% of gross sales. |
| Local Advertising Expenditure Spent by Franchisees | Currently 1% of gross sales, and the franchisor can require (upon 30 days’ notice) that franchisees spend up to 2% of gross sales. |
| Regional Advertising Co-ops | Not currently assessed. |
| Interest and Late Charge | Lesser of 18% per month or highest rate of interest allowed by law, plus a $25 late payment charge. |
| Costs of Inspection and Audit | Varies according to location. |
| Transfer Fee | $8,000; franchisees must also pay an $8,000 transfer fee for each undeveloped franchise right under the development agreement. |
| Successor Franchise Fee | $25,000 |
| Additional Training | Currently, tuition is $1,000; plus expenses to attend (travel and living expenses will vary). |
| Convention, Seminar or Meeting Fee | Will vary under circumstances (not to exceed $750 per person; does not include out-of-pocket attendance costs). |
| Costs and Attorneys Fees | Will vary depending on nature of the default or the claim brought. |
| Indemnification Under Franchise Agreement | Will vary depending on nature of the claim against the franchisor. |
| Insurance Premiums | Will vary depending on the location and insurer. |
| Cost of Testing and Investigation of New Suppliers | Will vary depending on investigation necessary (estimated to be approximately $300 to $800). |
| Payments for Items Supplied by the Franchisor or Its Affiliates | Current published prices and administrative fees. The administrative fee is currently 5% of the purchase price. Subject to increase based on the then current published rate. |
| POS System License and Related Fees | Currently an annual license fee of $3,000. |
| Relocation Fee | Not to exceed $5,000, plus the reasonable costs and expenses the franchisor incurs to evaluate the relocation of the spa. |
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