In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a goGLOW franchise, based on Item 7 of the company’s 2025 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a goGLOW franchise, based on Items 5 and 6 of the company’s 2025 FDD
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Section IV – News updates on the goGLOW franchise opportunity
Section V – Presentation and analysis of goGLOW’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:
- 2024 net revenue, cost of goods sold, payroll expenses, occupancy expenses, marketing expenses, general operating expenses, and net revenue minus disclosed expenses for the 3 goGLOW businesses that are owned and operated by goGLOW’s affiliates under the Proprietary Marks, operate from a permanent premises, and otherwise operate in a substantially similar manner to the Franchised Business being offered as of December 31, 2024 (each, an “Affiliate Flagship Location”)
Section VI – Key ratios, comparables, computations, and analyses for the goGLOW franchise opportunity (exclusive content for Platinum subscribers)
Section I – goGLOW Franchise Costs
- goGLOW franchise costs, based on Item 7 of the company’s 2025 FDD:
- Initial Franchise Fee: $60,000
- On-Site Initial Training Fee: $5,000
- Costs and Expenses Associated with Initial Training: $500 to $2,500
- Lease – Deposit and Rent Over First 3 Months: $5,000 to $18,000
- Design, Architecture, and Engineering: $8,000 to $15,000
- Site Survey – Due Diligence: $0 to $7,000
- Permits and Permit Management: $1,500 to $6,500
- Construction Project Management: $0 to $17,500
- Utility Deposit: $500 to $1,000
- Professional Fees: $3,000 to $5,000
- Net Leasehold Improvements: $50,000 to $180,000
- Furniture, Fixtures, and Equipment: $42,000 to $45,000
- Interior and Exterior Signage: $2,500 to $9,000
- Business Management System: $9,500
- Technology Fee – 6 Months: $6,000
- Digital Marketing and Advertising Management – 6 Months: $6,000
- Grand Opening – Project Management Fee: $5,000
- Business Licenses: $1,500 to $2,500
- Computer System Hardware: $0 to $3,500
- Financing/Leasing Amounts Due in Connection with Initial Equipment Package: $6,000 to $8,000
- Initial Inventory Package: $25,000 to $27,500
- Other Office Supplies: $500 to $1,000
- Initial Marketing Spend: $30,000
- Business Insurance – 3 Months: $400 to $1,500
- Additional Funds – 3 Months: $15,000 to $25,000
- Total Estimated goGLOW Franchise Costs: $282,900 to $497,000
Section II – goGLOW’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- goGLOW’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:
- Initial Franchise Fee: $60,000
- Royalty Fee: the greater of: (i) 8% of the Net Revenue generated by your Franchised Business over the preceding reporting period; or (ii) the applicable minimum Royalty Fee once you have been open and operating for some time
- Brand Fund Contribution: 1% of the Net Revenue generated by the Franchised Business over the preceding period
- Digital Marketing and Advertising Management Fee: $1,000/month (per Franchised Business)
- Local Advertising Requirement: you must expend a minimum amount equal to 1% of the Net Revenue of your Franchised Business per month
- Contribution to Advertising or Marketing Cooperative: currently not assessed
Section III – Number of Franchised and Company-Owned goGLOW Outlets
Franchised
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2024
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- Outlets at the End of the Year: 7
- Net Change: +7
Company-Owned
2022
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2023
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2024
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
Section IV – News Updates on the goGLOW Franchise
- goGLOW Debuts Whipped MOUSSE and SET IT Finishing Powder for a Next-Level Sunless Tanning Experience
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the goGLOW Franchise (Item 19, 2025 FDD)
- In this Item, goGLOW discloses the historical performance of (i) the 3 goGLOW Businesses that are owned and operated by goGLOW’s affiliates under the Proprietary Marks, operate from a permanent premises, and otherwise operate in a substantially similar manner to the Franchised Business being offered hereunder as of December 31, 2024 (each, an “Affiliate Flagship Location”), and (ii) 1 additional affiliate-owned business that opened and commenced operating in June 2023 in a temporary “salon suite” (the “Salon Suite,” and collectively with the Affiliate Flagship Locations, the “Disclosed Businesses”).
- goGLOW has excluded from this Item 19 the performance information of its current franchisees, as none were open for the entirety of the Measurement Period.
- Please note that each of the Affiliate Flagship Locations was open and operating for some time before the commencement of the applicable measurement periods, and, as such, should be considered more mature operations than those associated with a new Franchised Business.
Part 1 – Total Net Revenue of Affiliate Flagship Locations (2024)
- Edina, MN: $876,065
- River North, IL: $707,286
- Maple Grove, MN: $406,483
Part 2 – Net Revenue Less Disclosed Expenses of Affiliate Flagship Locations (2024)
- Edina, MN: $324,664
- River North, IL: $209,789
- Maple Grove, MN: $106,251
Part 3 – Average Net Revenue Less Disclosed Expenses of Affiliate Flagship Locations (2024)
Edina, MN
- Net Revenue: $876,065 (100.00%)
- Disclosed Cost of Goods Sold: $142,682 (16.29%)
- Disclosed Payroll Expenses: $143,857 (16.42%)
- Disclosed Occupancy Expenses: $77,052 (8.80%)
- Disclosed Marketing Expenses: $92,990 (10.61%)
- Disclosed General Operating Expenses: $94,820 (10.82%)
- Total Disclosed Expenses: $551,401 (62.94%)
- Net Revenue Minus Disclosed Expenses: $324,664 (37.06%)
River North, IL
- Net Revenue: $707,286 (100.00%)
- Disclosed Cost of Goods Sold: $99,185 (14.02%)
- Disclosed Payroll Expenses: $99,385 (13.91%)
- Disclosed Occupancy Expenses: $133,933 (18.94%)
- Disclosed Marketing Expenses: $81,593 (11.54%)
- Disclosed General Operating Expenses: $84,401 (11.93%)
- Total Disclosed Expenses: $497,497 (70.34%)
- Net Revenue Minus Disclosed Expenses: $209,789 (29.66%)
Maple Grove, MN
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- Disclosed Cost of Goods Sold: $66,392 (16.33%)
- Disclosed Payroll Expenses: $60,965 (15.00%)
- Disclosed Occupancy Expenses: $74,313 (18.28%)
- Disclosed Marketing Expenses: $39,865 (9.81%)
- Disclosed General Operating Expenses: $58,697 (14.44%)
- Total Disclosed Expenses: $300,232 (73.86%)
- Net Revenue Minus Disclosed Expenses: $106,251 (26.14%)
Average
- Net Revenue: $663,278 (100.00%)
- Disclosed Cost of Goods Sold: $102,753 (15.49%)
- Disclosed Payroll Expenses: $101,069 (15.24%)
- Disclosed Occupancy Expenses: $95,099 (14.34%)
- Disclosed Marketing Expenses: $71,483 (10.78%)
- Disclosed General Operating Expenses: $79,306 (11.96%)
- Total Disclosed Expenses: $449,710 (67.80%)
- Net Revenue Minus Disclosed Expenses: $213,568 (32.2%)
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.
- The Affiliate Flagship Locations are mature outlets. Despite their longer operating history, goGLOW does not expect that there will be any characteristics associated with the operations of a new Franchised Business that will be materially different than the Affiliate Flagship Location operations set forth in this Item.
- For each of the Disclosed Businesses above, “Net Revenue” means the total revenue generated from the offer and sale of all Approved Services and Approved Products, including all client membership agreements, gift card sales (which are accounted for and realized upon the sale [use/redemption] of such gift card) and other categories specifically identified in each Chart.
- The term “Net Revenue” does not include sales tax collected by the applicable location and paid to the appropriate taxing authority/agency, nor tips.
- “Net Revenue” accounts for client refunds that are bona fide and permitted in accordance with goGLOW’s System standards, policies, and specifications.
- Except as specifically provided in this Note and the Charts above, the data above does not intend to account for any other operating costs or expenses incurred in connection with the Affiliate Flagship Locations’ operations over the applicable Measurement Period, such as: (i) owner compensation or draws; (ii) any automobile-related costs/payments; (iii) meals and entertainment; (iv) parking and/or tools; (v) certain depreciation and/or amortization; and/or (vi) any other cost or expense not specifically identified in the Charts and/or Notes above.
Section VI – goGLOW Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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