Amazing Lash Studio Franchise

Financial Health Notes

Amazing Lash Franchise, LLC's Franchise Disclosure Document explicitly states that its own financial condition raises questions about its ability to provide services and support to franchisees. However, the company provides the audited financial statements of its affiliate, Elements Therapeutic Massage, LLC (ETM), which has issued an absolute and unconditional guarantee for Amazing Lash Franchise, LLC's obligations. ETM reported positive net income for the past three years: $248,456 in 2024, $138,317 in 2023, and $1,164,956 in 2022. ETM also demonstrates strong working capital, with current assets of $42.7 million compared to current liabilities of $2.8 million in 2024. The company does have a significant long-term debt of $21.4 million in 2024, which is part of a larger joint and several liability with its parent affiliates totaling over $56 million. This debt's maturity was extended from September 2024 to March 2027 in 2024, and the parent company, WBZ Investment LLC, has made a $10 million principal payment and is reported to be in compliance with all financial covenants. Despite the initial concern noted for Amazing Lash Franchise, LLC itself, the guarantee from ETM, with its positive financial performance and working capital, aims to provide financial backing.

Ongoing Support

Amazing Lash Studio provides ongoing support to its franchisees after their Studios open. This support includes general guidance on Studio operations based on submitted reports and inspections. The franchisor administers the Brand Marketing Fund, to which franchisees contribute 2% of their Gross Receipts (potentially increasing to 4%), utilizing these funds for national, regional, and local marketing, advertising, and promotional programs, including public relations, market research, and maintenance of the Franchise System Website and online campaigns. Franchisees also have a Local Marketing Spend Requirement of at least $2,000 per month for digital advertising and an additional 2% of Gross Receipts for other approved local marketing. Amazing Lash Studio may establish marketing cooperatives that franchisees are required to join, with contributions determined by the cooperative. Amazing Lash Studio mandates the use of a specific Computer System for which franchisees pay a monthly Technology Fee, and the franchisor can modify these system requirements. Franchisees receive and must adhere to the Operations Manual, which contains System Standards and is updated periodically. The franchisor requires franchisees and their Designated Managers to attend annual franchise owner conferences and may also require attendance at regional meetings, other in-person or electronic training courses, trade shows, education programs, and webinars. Franchisees are responsible for hiring and maintaining a Lash Stylist Trainer who completes the franchisor's LST Program. Franchisees' front desk staff and stylists also have specific training requirements, which may include electronic training courses. Amazing Lash Studio may offer an optional (or later mandatory) manager training program for a fee. Additionally, the franchisor may conduct unannounced visits and Quality Assurance Inspections at Studios and may advise on various operational aspects, such as facility appearance, client service, inventory management, and administrative procedures.

Territory Size Requirements

Amazing Lash Studio defines territories in different ways depending on the type of agreement. For single-studio franchisees, an initial non-exclusive "Search Territory" is agreed upon for site identification, which can span a portion of a city, an unincorporated area, or a multi-county area. Once a specific studio location is approved, it is granted a "Protected Area." This Protected Area is typically a circular area with a 1.5-mile radius centered on the studio's front door. In densely populated urban environments, the Protected Area's boundaries might be determined by political subdivisions, streets, or ZIP codes, and could be the lesser of a 1.5-mile radius or an area with a population density of 50,000 people. For area developers, a broader "Development Area" is designated, with its boundaries described using map coordinates, city limits, counties, or states. The size of this Development Area is determined by Amazing Lash Studio based on various factors like demographics, traffic patterns, competition, and site availability.