This post was updated on June 7, 2016 to reflect information from Amazing Lash Studio’s 2016 FDD (Item 7).
Detailed Estimates of Amazing Lash Studio Franchise Costs Based on Item 7 (Estimated Initial Investment) of Amazing Lash Studio’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $39,000
2. Lease Expenses: $6,000 to $14,000
3. Leasehold Improvements: $120,000 to $300,000
- These estimates are based on the franchisor’s affiliate’s experience in establishing Amazing Lash Studio businesses and the franchisor’s experience assisting franchisees in establishing franchised Amazing Lash Studio businesses.
- Amazing Lash Studio businesses are typically located in commercially-zoned shopping or entertainment areas.
- The leasehold improvements estimate is based on the cost of adapting the franchisor’s prototypical architectural and design plans to a facility containing approximately 1,500 to 2,100 square feet. Amazing Lash Studio businesses can range anywhere from 1,500 to 2,500 square feet but the franchisor anticipates that most Amazing Lash Studio businesses will contain between 1,500 and 2,100 square feet.
- The estimates assume that the landlord will provide connections to adequate electrical, gas, water, and sewage service.
- Your actual costs may or may not include site preparation and finish-out costs, depending on the arrangements you negotiate with your landlord. If the landlord contributes to the cost of finish-out, total leasehold improvement costs could be reduced.
4. Furniture, Fixtures, and Equipment: $20,000 to $40,000
- This estimate includes all furniture, fixtures, and equipment to be used in your Amazing Lash Studio business, including trade dress, interior art work, and design elements. All of these items must meet the franchisor’s standards and specifications.
5. Computer Hardware and Software: $14,150 to $16,500
- The amount includes estimated purchase costs or monthly lease cost of computer hardware and software (including, without limitation, back office software and point-of-sale software meeting the franchisor’s specifications and provided by its designated supplier or other manufacturer approved in writing by it) that you must use in the operation of your Amazing Lash Studio business.
6. Initial Training Costs (per person): $250 to $3,000
- The franchisor provides initial training to your initial Principal Owner(s) and General Manager (if different) at no additional charge. Therefore, these amounts include only your out-of-pocket costs for the training of these people. You must pay all expenses you or your employees incur in the initial training program, like travel, lodging, meals, and wages.
- The figures in the chart represent the estimated cost for one individual to attend the initial training program. The franchisor currently charges a $500 per person tuition fee for the fourth and each subsequent attendee you send to the initial training program.
7. Security Deposits: $4,000 to $8,000
- You will likely be required to pay security deposits to certain third parties, including your landlord, telephone service provider, local utility companies, and various equipment vendors and suppliers.
8. Architects, Plans, and Designs (including Site Plan/Design Fee): $2,500 to $7,500
- You must use an approved architect/design vendor. After you receive your initial site plans/designs from the architect/vendor, you may incur additional architect/design costs if modifications or other design services are needed in order to complete construction of your Amazing Lash Studio business.
9. Signage: $10,000 to $15,000
- All interior and exterior signage used at, or in connection with, your Amazing Lash Studio must conform to the franchisor’s standards and specifications.
10. Initial Inventory/Supplies: $12,000 to $24,000
- The franchisor estimates that this range will cover the cost of product inventory (including eye lashes and related products), supplies, and other miscellaneous items for approximately the first 90 to 120 days of operations.
11. Grand Opening Marketing: $10,000
- You must carry out a grand opening promotion for your Amazing Lash Studio in accordance with the franchisor’s standards. The entire grand opening marketing amount must be spent during the period beginning 10 days before the opening of your Amazing Lash Studio and ending 80 days after such opening date (the “Grand Opening Period”).
12. Business Supplies: $250 to $1,500
13. Business Permits/Licenses (first year): $500 to $2,000
14. Insurance Deposits and Premiums (first year): $1,500 to $3,000
15. Professional Fees (first year): $2,500 to $5,000
- The franchisor strongly recommends that you retain an attorney to advise you on the franchise offering. You may also wish to retain an accountant to help you evaluate the franchise offering.
16. Additional Funds (three months): $30,000 to $105,000
- These amounts do not include any estimates for debt service or any salary or draw for you. These amounts are estimates and the franchisor cannot assure you that you will not have additional expenses.
17. Total: $272,650 to $593,500
- The franchisor relied on its affiliate’s company-owned Amazing Lash Studio businesses and its experience assisting franchisees in establishing franchised Amazing Lash Studio businesses to compile these estimates.