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Considering an Amazing Lash Studio Franchise? Don’t Overlook These 23 Important Franchise Fees

by Franchise Chatter on November 9, 2017

in Franchise Fees, Personal Care Franchise, Salon Franchise



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If you are considering an Amazing Lash Studio franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of Amazing Lash Studio’s 2017 FDD).

1.  Initial Franchise Fee:  $39,000



  • Upon signing the Franchise Agreement, you must pay Amazing Lash an Initial Franchise Fee in the amount of $39,000.
  • This amount is payable in one lump sum payment, is considered fully earned and nonrefundable upon receipt, and is imposed uniformly on all franchisees.

2.  Initial Inventory/Supplies:  $25,000 to $59,000

  • Prior to opening your Franchised Business, you must purchase your furniture and your initial inventory/supplies, including eye lash extensions, from Amazing Lash’s affiliate.
  • The cost of this inventory/supplies and furniture will range from $25,000 to $59,000, depending on the size of your particular Amazing Lash Studio.
  • This amount is payable in one lump sum payment, is considered fully earned and nonrefundable upon receipt, and is imposed uniformly on all franchisees.

3.  Royalty Fee:  6% of the Amazing Lash Studio’s Gross Sales

  • Due Date:  On the 1st day and the 16th day of each month.
  • Amazing Lash requires you to pay the royalty fees by electronic funds transfer.
  • Royalties accrued from the 1st to 15th of each month are debited from your account via electronic funds transfer on the next business day following the end of the period. Royalties accrued from the 16th through the end of the month are debited from your account via electronic funds transfer on the first business day of the following month.

4.  Franchisee Local Advertising and Cooperatives:  the greater of (i) $1,750 per month or (ii) 4% of the Amazing Lash Studio’s Gross Sales

  • Due Date:  Payments for local advertising are due when billed by the local advertiser.
  • Amazing Lash has the right to designate any geographic area in which two or more company-owned or franchised Amazing Lash Studios are located as a region for purposes of establishing an advertising cooperative (“Cooperative”).
  • If Amazing Lash establishes a Cooperative that includes your Amazing Lash Studio, you will be required to contribute at least 2% of your Gross Sales to the Cooperative, but any amounts you contribute to your Cooperative will be applied to satisfy a portion of your local advertising requirements.
  • Your required contributions to a Cooperative will not exceed your individual local advertising requirements.
  • If Amazing Lash has company-owned Amazing Lash Studios that are located in your Cooperative territory, those company-owned Studios will not have the power to increase your required Cooperative contributions.
  • All or a portion of your contributions to a Cooperative may be used to establish and/or maintain a website(s) focused on promoting the Amazing Lash Studio Concept in and around your market area.

5.  Franchisee Advertising Fund:  1% of the Amazing Lash Studio’s Gross Sales

  • Due Date:  On the 1st day and the 16th day of each month.
  • The Franchisee Advertising Fund contribution is in addition to the local advertising requirement.
  • Amazing Lash requires you to pay the Advertising Fund contribution by electronic funds transfer.
  • Advertising Fund amounts accrued from the 1st to 15th of each month are debited from your account via electronic funds transfer on the next business day following the end of the period. Advertising Fund amounts accrued from the 16th through the end of the month are debited from your account via electronic funds transfer on the first business day of the following month.
  • Amazing Lash may increase the required contribution amount on not less than 30 days’ written notice to you (up to a maximum of 2% of Gross Sales).

6.  Business Listings:  between $100 and $1,000 per year

  • Due Date:  On demand.
  • You must place and pay the cost of a business listing acceptable to Amazing Lash, which may, at its option, be an Internet business listing, in such directories and categories as Amazing Lash may specify from time to time in the Manuals or otherwise in writing.
  • Amazing Lash will not credit your payments for these listings towards your local advertising expenditure requirement.

7.  PCI Compliance Service Fees:  currently $282 or $384 per month, depending on whether you choose to purchase or lease your PCI compliance equipment



  • Due Date:  Monthly.
  • You must comply with all Payment Card Industry (“PCI”) standards and requirements, and you must use Amazing Lash’s designated vendor for the provision of services that are designed to enable you to comply with PCI standards and requirements.
  • Amazing Lash may increase the amount of this fee on not less than 30 days’ written notice to you if the vendor increases its fees.

8.  Interest:  the lesser of 18% per year or the maximum lawful rate

  • Due Date:  On demand.
  • Amazing Lash will charge interest on all overdue amounts.

9.  Late Fee:  $100 for each month that an amount owed to Amazing Lash remains past due

  • Due Date:  On demand.
  • Amazing Lash may charge a late fee for any delinquent amounts due under the Franchise Agreement.

10.  Additional Training:  at Amazing Lash’s option, a per diem rate of $350 for each trainer, based on Amazing Lash’s costs of providing the training

  • Due Date:  Before additional training.
  • You must also pay the expenses of your personnel attending training.

11.  On-site Remedial Training:  the then-current per diem fee for remedial training, plus costs. Amazing Lash’s current per diem rate is $350 per trainer.

  • Due Date:  When billed.
  • If you ask or if Amazing Lash believes it is appropriate, Amazing Lash will (subject to availability) provide trained representatives to conduct on-site remedial training at your Amazing Lash Studio.

12.  Transfer Fee (Franchise Agreement):  an amount equal to 25% of Amazing Lash’s then-current initial franchise fee, provided that the transfer fee shall not exceed $10,000 (except that in some cases, the fee will be equal to Amazing Lash’s out-of-pocket costs and expenses)

  • Due Date:  With transfer application.
  • You must pay Amazing Lash a transfer fee equal to 25% of its then-current initial franchise fee upon transfer, except that if you are an individual transferring your rights and obligations to an entity owned by you, the transfer fee shall be an amount equal to the out-of-pocket costs and expenses incurred by Amazing Lash in connection with such transfer (including legal and accounting fees).

13.  Renewal Fee (Franchise Agreement):  an amount equal to 25% of Amazing Lash’s then-current initial franchise fee, provided that the renewal fee will not exceed $10,000



  • Due Date:  Upon renewal of the Franchise Agreement.
  • In order to renew your Franchise Agreement, you must, among other things, pay Amazing Lash the renewal fee in a lump sum payment.

14.  Securities Offering Fee:  an amount equal to Amazing Lash’s actual costs and expenses associated with the proposed securities offering, which may be as low as $0 and in no event will be more than $10,000

  • Due Date:  When billed.
  • You must pay this fee to Amazing Lash if you elect to offer securities in your entity using a prospectus or other offering document/materials, which must be approved by Amazing Lash in advance of its distribution.
  • This fee covers Amazing Lash’s expenses for having attorneys or other professionals review your offering materials.
  • Amazing Lash limits its review to the manner in which the offering materials describe your and its relationship.

15.  Manual Replacement Fee:  $500

  • Due Date:  When billed.
  • Amazing Lash loans you one set of Manuals at no charge.

16.  Inspection and Testing:  cost of inspection, if applicable, and cost of test. The costs for testing/inspection of a product will vary based on the testing required for the particular product, and Amazing Lash will provide an estimate of the costs to you before testing a product or inspecting any facilities.

  • Due Date:  When billed.
  • Before approving a supplier, Amazing Lash may require you to pay the cost of testing the supplier’s products and inspecting its facilities (including Amazing Lash’s administrative expenses).

17.  Indemnification:  varies according to loss

  • Due Date:  On demand.
  • You must indemnify Amazing Lash when certain of your actions result in loss to it.

18.  Audit Fee:  cost of audit

  • Due Date:  When billed.
  • Payable if an examination or audit shows you have understated any amount owed to Amazing Lash by 2% or more.

19.  Franchisee Monthly Software and Technology Licensing and Support Fees:  $175 per month from the date you sign your Franchise Agreement through the date you first open your Amazing Lash Studio for business, and $350 per month thereafter (these fees are per franchised location).

  • Due Date:  Due on the 1st day of each month.
  • Monthly Software and Technology Licensing and Support fees will be payable for each Franchise Agreement you sign and begin immediately upon signing your Franchise Agreement, except that if you sign two or more Franchise Agreements simultaneously, then the $175 monthly fees under your additional Franchise Agreements will not begin until you begin the site selection process for those additional sites (i.e. until your additional site selection search becomes active in Amazing Lash’s LashNet support system).

20.  Insurance Fee:  an amount equal to Amazing Lash’s actual expenses for the required coverages

  • Due Date:  On demand.
  • If you fail to maintain the required insurance, Amazing Lash may (but need not) obtain it for you. If it does, it will charge you a fee equal to its actual expenses for obtaining and maintaining the required coverages.

21.  Liquidated Damages for Intellectual Property Infringement:  $100 for each item used or sold by you that is not authorized by Amazing Lash or otherwise violates its or its affiliates’ rights in the Amazing Lash Studio trademarks, patents, or other intellectual property

  • Due Date:  On demand.
  • This fee is meant to compensate Amazing Lash for your unauthorized use of its intellectual property associated with the Amazing Lash Studio brand. This fee is in addition to, and not in lieu of, any other remedies available to it.

22.  Enforcement Costs:  will vary

  • Due Date:  As incurred.
  • You must pay Amazing Lash’s costs of enforcement (including attorney’s fees and costs) if you do not comply with the Franchise Agreement.

23.  Annual Conference Fee:  $1,500 plus then-current annual conference registration fees for at least two people

  • Due Date:  On demand.
  • If Amazing Lash schedules an annual franchise conference, it will require you and your single manager to attend and pay registration fees.
  • If you and your manager do not attend, Amazing Lash will charge you registration fees for a minimum of two people along with a $1,500 fee for failing to attend.

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