Updated November 1, 2020.
Detailed Estimates of Amazing Lash Studio Franchise Costs Based on Item 7 (Estimated Initial Investment) of Amazing Lash Studio’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $39,900
- When you sign a Franchise Agreement to develop a single Studio, you must pay the franchisor an Initial Franchise Fee of $39,900. You must pay the Initial Franchise Fee as a lump sum by wire transfer.
- If you are signing the Franchise Agreement under an Area Development Agreement under which you or your affiliate previously paid a Development Fee, then you may not be required to pay an Initial Franchise Fee at the time you execute the Franchise Agreement.
2. Lease Review: $3,000 to $5,000
- Before signing any lease, sublease, or other agreement to secure possession of any site (a “Lease”), you must obtain the franchisor’s written approval.
- The Lease must contain certain provisions the franchisor requires, pursuant to the form of Lease Rider attached to the Franchise Agreement. It is your sole responsibility to obtain a fully executed Lease Rider when executing your Lease.
- The franchisor recommends you have an attorney or other professional help you review and negotiate your Lease.
3. Leasehold Improvements (net of landlord tenant allowances): $71,600 to $264,600
- The cost of construction buildout before occupying the leased premises for your Studio, including the cost of design and architectural services and services performed by one of the franchisor’s designated suppliers for construction services, will vary depending on the size of your Studio, the state, city or area in which your Studio is located, the specific location and condition of the premises, the demand for the premises among prospective lessees, the site’s previous use, and the nature and extent of improvements required.
- The leasehold improvements estimate is based on the cost of adapting the franchisor’s prototypical architectural and design plans to a facility containing approximately 1,200 to 1,600 square feet.
- Typically, costs are higher in large metropolitan areas or if you choose premises with square footage in excess of the high range of 1,600 square feet.
- The range disclosed above includes the construction management fee you must pay the franchisor in the event it approves an exception to the requirement that you use one of its designated suppliers for construction.
- In addition, the range above is the range of costs after deducting any landlord allowances (tenant improvements, rent deduction, and the like), which may or may not be granted by your landlord.
- Your construction costs may be higher depending on all of the factors described in this note.
4. Cabinetry and Millwork: $19,200 to $31,300
5. Furniture, Decor, Lighting, and Other Equipment: $12,900 to $21,300
- Estimates include all millwork, furniture, fixtures, and equipment to be used in your Studio, including trade dress, interior artwork, and design elements. All millwork, furniture, fixtures, and equipment must meet the franchisor’s System Standards. You must purchase from the franchisor’s affiliate specific furniture, fixtures, and equipment for the Studio.
6. Technology Fee: $1,210 ($605 per month for two months before opening)
- You must pay the franchisor the Technology Fee for two months before opening (currently $605 per month).
- If you are purchasing an existing Studio, you will be required to pay the franchisor a software transfer fee of $350, payable by ACH.
7. Computer System: $19,300 to $24,300
- The Computer System includes: (a) estimated purchase costs or monthly lease cost of computer hardware and software (including back office software and point-of-sale software meeting the franchisor’s specifications and provided by the franchisor’s designated supplier or other manufacturer approved in writing by the franchisor); and (b) PCI compliance hardware and equipment that you must purchase or lease from the franchisor’s designated supplier and use in the operation of your Studio.
8. Training Program Costs: $250 to $3,000
- You must pay your own transportation, meals, lodging, and any other living expenses for you and any other persons attending the Training Program. The amount you spend per individual will depend on the distance traveled and the type of accommodations you choose.
- The estimate contemplates attendance by you and up to two other people traveling to the franchisor’s Support Center office in Arizona for approximately four days.
- The estimates do not include any wages or salary you may choose to pay yourself or others while attending the Training Program.
9. Real Property and Utility Security Deposits: $2,300 to $8,200
- If you do not own retail space adequate to open your Studio, you must lease or rent the retail space from a third party.
- Studios are typically located in shopping or entertainment areas and require approximately 1,200 to 1,600 square feet. Estimated monthly lease payments range from $2,000 to $7,400 (including common area maintenance payments) depending on the size, condition, and location of the leased premises.
- Your landlord may require a security deposit before leasing the premises to you, which is typically equal to one month’s rent.
- Some utility companies also may require a security deposit before commencing services. The franchisor estimates the total amount of utility security deposits to be approximately $300 to $800.
10. Architectural Plans and Design: $3,000 to $8,000
- You must use an architect and design vendor approved by the franchisor.
11. Signage: $11,000 to $15,000
- All interior and exterior signage used at, or in connection with, your Studio must conform to the franchisor’s System Standards. The cost of the signs varies depending on the type, size, and location of the sign, and may also be affected by shipping costs, as well as local zoning and other ordinances and regulations and landlord restrictions.
12. Initial Studio Inventory and Supplies: $23,800 to $29,200
- 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.
- You must purchase from the franchisor’s affiliate specific inventory and supplies for the operation of your Studio.
13. Grand Opening Spend Requirement: $15,000; $5,000 if you are purchasing an existing Studio
- You must conduct a grand opening promotion for your Studio in accordance with the franchisor’s System Standards.
- You will pay third-party advertising vendors directly, but all grand opening advertising must be agreed upon by you and the franchisor in advance, and all advertising must conform to the franchisor’s System Standards.
- This entire grand opening marketing amount must be spent as follows: (i) you must spend $10,000 beginning 60 days prior to the opening of your Studio, and (ii) you must spend $5,000 within the first 30 days after your Studio opens.
- Notwithstanding the foregoing, if you purchase an existing Studio, you shall instead be responsible for spending $5,000 as your Grand Opening Spend Requirement within 60 days after the date you take possession of the Studio.
14. Business Supplies: $250 to $1,500
- The franchisor estimates that this range will cover the cost of various office and business supplies needed to operate a Studio for approximately the first 90 to 120 days of operations.
15. Business Licenses and Permits: $500 to $2,000
- The cost includes the licenses and permits required to operate a Studio in your location. The license and permit requirements are specific to the state and city/town in which your Studio is located.
- Certain states may require that you file and post a bond, the estimated cost of which is not included in the table.
16. Insurance: $1,000 to $3,000
- You must obtain insurance coverage from the franchisor’s approved suppliers with the limits required by the franchisor. Your landlord may require additional insurance.
- Under the franchisor’s required insurance program, you pay 20% of the annual premium up front and the remaining premiums for the year in equal installments on a monthly basis.
- The estimate shown in the table reflects the initial 20% payment, which you will pay before your Studio opens. However, franchisees have the option of paying the entire annual premium up front. If you elect to pay your entire annual insurance premium up front, these figures will be higher.
17. Professional Fees: $2,500 to $5,000
- The franchisor recommends that you retain an attorney to advise you on this franchise offering. You may also wish to retain an accountant to help you evaluate this franchise offering.
18. Site Survey Fee: $2,500
- No later than 10 days after the date that you sign an approved lease for the premises, you must pay to the franchisor a non-refundable site survey fee equal to $2,500, in the form of a lump sum payment by ACH.
19. Pre-Opening Waxing/Tinting Training Fee: $0 to $1,500
- Before the Opening Date, if you are legally capable of offering certain waxing and tinting services at your Studio, you must pay to the franchisor a non-refundable waxing and tinting training fee equal to $1,500, in the form of a lump sum payment by ACH, for the franchisor to provide training for such services on-site at your Studio in conjunction with the opening assistance the franchisor provides.
20. Additional Funds (3 months): $10,000 to $27,000
- The range of estimated costs represents your estimated initial start-up expenses (other than the amounts separately identified in the table), which include payroll costs (excluding a draw or salary for you or your manager if you are not the manager), lease payments, marketing expenses, uniform expenses, the costs of supplies, and other operating expenses.
21. Total: $239,210 to $508,510
- The franchisor relied on its and its affiliates’ many years of business experience in selling and supporting Amazing Lash Studio, Elements Massage, and Fitness Together franchises to compile these estimates.