In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Amazing Lash Studio franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an Amazing Lash Studio franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Amazing Lash Studio franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned Amazing Lash Studio outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Amazing Lash Studio’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average, median, highest, and lowest revenue, number of members, and conversion percentage for the Top 10, Top Third, Bottom Third, Bottom 10, and all 200 franchised Amazing Lash Studios that were open as of January 1, 2019, and operated throughout 2019
- 2019 average, median, highest, and lowest revenue, number of members, and conversion percentage for the 39 franchised Amazing Lash Studios that were open between zero and 12 months as of January 1, 2019, and operated throughout 2019
- 2019 average, median, highest, and lowest revenue, number of members, and conversion percentage for the 113 franchised Amazing Lash Studios that were open between 12 and 36 months as of January 1, 2019, and operated throughout 2019
Section I – Background Information
15 Things You Need to Know About the Amazing Lash Studio Franchise
Opens 250th Studio
1. In mid-February 2020, Amazing Lash Studio announced a major milestone with the opening of its 250th studio nationwide in Laguna Niguel, California. As the category leader in the eyelash extension space, the brand has been defining the beauty category since its inception.
2. The brand’s high-trajectory momentum is clear, as the Amazing Lash Studio system has grown from 53 studios in 2015 to 250 studios today. The beauty brand is nearly three times the size of any other eyelash extension brand nationally and the continued growth potential for this category is tremendous.
3. Heather Elrod, CEO of Amazing Lash Studio, said, “What a thrill it is to hit the 250th studio milestone. Thank you to all of our franchisees, their studio employees and our guests. It’s such an exciting time to be part of an inspirational brand, where our focus is on creating lasting beauty and confidence in each guest. Not only does the Amazing Lash Studio brand empower our guests, it also has created a powerful network of entrepreneurial and supportive women. We have several female franchisees, 99% of our guests are female and the teams within the studio are predominantly women. I am proud that we are creating a culture and a movement of women helping women.”
4. Last year, the Amazing Lash Studio brand launched its proprietary Featherweight Lashes, Lash Lift, five new lash adhesives, and five new lash curls. In 2020, the brand launched eyebrow treatments including waxing and tinting and new eyebrow retail products. The brand also launched its first augmented reality beauty simulator this spring.
5. Elrod added, “My philosophy for the Amazing Lash Studio system is that we want ‘healthy growth,’ not growth for growth’s sake. The brand’s growth strategy is focused on optimizing both individual studio and network-wide performance. We’re focused on providing franchisees with the systems, innovations and forward-looking technologies they need to both stay at the forefront of the beauty industry and help run their business successfully.”
Debuts Augmented Reality Filter
6. In mid-August 2020, Amazing Lash Studio announced a first-of-its-kind, experiential augmented reality (AR) application, GlamCam by Amazing Lash Studio. Available within the Amazing Lash Studio mobile app and on the brand’s website, this immersive AR filter delivers a new level of convenient, personalized service to consumers.
7. GlamCam, the first AR beauty app offered by a lash extension brand, provides the opportunity to virtually “try on” the brand’s four proprietary styles, allowing users to experiment with new looks and ultimately find the best lash look for them. By taking the guesswork out of finding the right lash look, the GlamCam is positioned to support business results such as improving guest satisfaction, membership conversion, and retention as well as engaging new customers.
8. According to Heather Elrod, CEO of Amazing Lash Studio, “At Amazing Lash Studio, our mission is to create lasting beauty and confidence so our guests will look and feel amazing. We created the GlamCam to help bridge the gap for our guests between describing the look they want and being satisfied with the look they receive. Guests can now arrive at their appointment with a GlamCam photo of how they look in their selected style and show this to their lash stylist. During this time when masks are part of our daily routine, our eyes are an even more powerful form of personal expression than they were before. Our hope is that GlamCam will provide a fun and playful way to reach more women and show them how even more beautiful and confident they look in eyelash extensions!”
9. Innovative features on the GlamCam app include:
- The app “virtually follows” the user’s head and eye movements so she has a real-life experience with her desired look;
- The user can modify her look within the app as follows:
- Lash Styles: Switch between Amazing Lash Studio’s Cute, Sexy, Natural, and Gorgeous styles;
- Lash Volume: Add or reduce lash volume via a user-controlled slider control;
- Lash Length: Increase or reduce lash length via a slider control.
- The user can snap an Instagram worthy selfie and then save it to her phone and bring it to her next appointment or share it with her friends;
- The user can also book her next appointment directly through the app.
Named in Entrepreneur Magazine’s 2020 Fastest-Growing Franchises List
10. In mid-March 2020, Amazing Lash Studio was ranked No. 95 in Entrepreneur magazine’s 2020 Fastest-Growing Franchises list. This highly competitive list recognizes the 150 companies with the greatest franchise unit growth in North America, based on the number of new franchise units added in the United States and Canada from July 2017 to July 2018, as verified by Entrepreneur magazine.
11. Heather Elrod, CEO of Amazing Lash Studio, said, “It’s an honor to be ranked on Entrepreneur’s Fastest-Growing Franchises list again this year. The brand’s growth is a testament to the entrepreneurial spirit and passion of its franchisees and studio teams, and we’re looking forward to continuing to lead the eyelash extension category with growth and innovation. We’re maintaining focus on optimizing operations both at the studio level, and across the system as a whole. Our priority continues to be providing franchisees with everything they need to stay at the forefront of the beauty industry, with the goal of supporting sustainable and profitable businesses.”
12. Amazing Lash Studio was founded in 2010 by Edward and Jessica Le in Houston, Texas. The Les, immigrants from Vietnam, were interested in starting their own business and were some of the first people to recognize the growing demand for lash extensions. As one of the first lash extension studios, Amazing Lash was a big success. The Les opened additional locations and began franchising the Amazing Lash Studio concept in 2013.
13. In 2016, after Amazing Lash Studio had grown to 75 locations, the Les looked into selling the company. The Les brought on Heather Elrod to help get Amazing Lash ready for sale. During this time, the brand grew to over 200 locations and attracted the attention of WellBiz Brands.
14. Backed by KSL Capital Partners, WellBiz Brands acquired Amazing Lash Studios from the Les, who decided to exit the company completely. Heather Elrod was appointed CEO and today, there are Amazing Lash Studios across the U.S.
Entrepreneur’s Franchise 500
15. Amazing Lash Studio ranked No. 307 on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Amazing Lash Studio franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Amazing Lash Studio’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 115
- Outlets at the End of the Year: 172
- Net Change: +57
- Outlets at the Start of the Year: 172
- Outlets at the End of the Year: 205
- Net Change: +33
- Outlets at the Start of the Year: 205
- Outlets at the End of the Year: 237
- Net Change: +32
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 7
- Net Change: +7
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 7
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- The following table describes 2019 Average Revenue, Average Number of Members, and Average Conversion Percentage, all as of December 31, 2019, for three categories of franchised Studios that were open as of January 1, 2019:
- (1) all franchised Studios that were open as of January 1, 2019, and operated throughout 2019;
- (2) franchised Studios that were open between zero and 12 months as of January 1, 2019, and operated throughout 2019; and
- (3) franchised Studios that were open between 12 and 36 months as of January 1, 2019, and operated throughout 2019.
- As of December 31, 2019, there were 245 Studios in operation in the United States. Of those 245 Studios, seven Studios were operated by the franchisor’s subsidiaries.
- Of the remaining 238 franchised Studios:
- (1) 200 were open as of January 1, 2019, and operated throughout 2019;
- (2) 39 were open between zero and 12 months as of January 1, 2019, and operated throughout 2019; and
- (3) 113 were open between 12 and 36 months as of January 1, 2019, and operated throughout 2019.