Avari Beauty Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$135,700 - $232,000
Franchise Fee
$22,500
Business Summary
Avari Beauty operates esthetician salons that offer a variety of beauty services and products to customers. The business focuses on using eco-friendly and sustainable supplies, including its own proprietary line of products. Avari Beauty aims to provide a quiet, calm, and relaxing salon experience while using high-quality products in its beauty services.
Corporate History
Avari Beauty Franchise, LLC was formed as a Minnesota Limited Liability Company on January 3, 2023. The brand itself, Avari Beauty, has been in operation through an affiliate company, Kari Tribble Enterprises, LLC, in White Bear Lake, Minnesota, since June 2016. Avari Beauty began offering franchises in February 2024.
Financial Overview
Investment Range
$135,700 - $232,000
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
5%
Equipment Costs (Low)
$40,000
Equipment Costs (High)
$85,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financing Details
Avari Beauty does not offer any direct or indirect financing to its franchisees. They also do not guarantee any loans, leases, or other financial obligations for franchisees. This means that if you're looking to open an Avari Beauty franchise, you'll need to arrange all your own funding, whether through banks or other lenders.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Avari Beauty has no legal disputes or lawsuits to report.
Bankruptcy History
Avari Beauty has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Avari Beauty franchise agreement, franchisees can get the option for up to two additional terms, each lasting 5 years. For each renewal, Avari Beauty franchisees must give notice between 90 and 180 days before their current agreement is set to expire. They must also be in full compliance with all their contractual obligations to Avari Beauty Franchise and any other third parties. A key requirement is to renovate and update their business location to meet Avari Beauty's most current brand standards, which could include a full remodel. Franchisees will also need to sign the franchise agreement that is current at the time of renewal, along with any related documents like a personal guarantee. It's important to note that this new agreement might have different terms and fees, although franchisees won't have to pay another initial franchise fee. Finally, franchisees must sign a legal release form, unless laws in their state prevent this.
Training & Support Program
Franchisor Assistance
Avari Beauty provides comprehensive support to its franchisees, starting even before the business opens. Before opening, Avari Beauty helps franchisees by reviewing potential locations and offering advice on site selection. They provide standard building and floor plans, as well as specifications for decor. Franchisees receive guidance on suggested staffing levels and hiring, and they get access to the Brand Standards Manual. Avari Beauty also advises on planning a market introduction program. Franchisees and one other team member receive initial training at headquarters or a designated location, covering topics like Avari Beauty culture, operations, team building, pricing, client interactions, daily salon tasks, technology, and marketing. While the training itself is free for up to two people, franchisees are responsible for their own travel and living expenses. Additionally, Avari Beauty offers 3-4 days of on-site support during the business opening. After opening, Avari Beauty continues to support franchisees with advice on business improvement and resolving operating problems, available by phone or electronic communication. If in-person support is requested, a daily fee plus expenses applies. Avari Beauty provides recommended prices for services and products, along with suggested procedures for administration, bookkeeping, accounting, and inventory control, which may become mandatory. For marketing, Avari Beauty manages a Brand Fund, to which franchisees contribute 1% of their gross sales monthly, used for various marketing and public relations efforts including maintaining the brand's website. Franchisees must also spend at least 4% of their gross sales each month on local marketing and get approval for any advertising materials they create. Avari Beauty has the right to form local or regional advertising cooperatives. In terms of technology, Avari Beauty requires franchisees to use specific systems, including the Mangomint POS/CRM system, a credit card processor, and an accounting platform like QuickBooks, along with an iPad and card reader. Franchisees pay subscription fees for these systems directly to third-party suppliers and must upgrade or update them as Avari Beauty requires.
Initial Training Hours
58
Training Location
Initial training for Avari Beauty franchisees is a flexible program that can happen in a few different ways. It might be conducted remotely, meaning online or virtually. Alternatively, it could be held in person at the company's main office in White Bear Lake, MN, or even at your own franchise location once your salon is mostly set up and ready to open.
Ongoing Support
After opening, Avari Beauty manages a Brand Fund for marketing purposes, and provides an unaudited annual financial statement of this fund to Avari Beauty franchisees upon request. Avari Beauty also continuously maintains a brand website that includes each Avari Beauty franchisee's business details and phone number.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Avari Beauty franchisees are granted a protected territory. Avari Beauty defines these territories, typically based on a radius around the specific business location. However, other boundaries like county lines, political boundaries, streets, geographical features, or trade areas may also be used. Each Avari Beauty territory is designed to encompass a population of approximately 50,000 to 100,000 people.
Staffing Notes
Avari Beauty locations must always have a Principal Executive who is primarily responsible for the business and makes decisions. This person must own at least 10% of the Avari Beauty business. The Principal Executive is required to complete an initial training program and any future training or meetings that Avari Beauty requires. While the Principal Executive doesn't have to be present every day, the business must always be under the direct, on-site supervision of either the Principal Executive or a hired General Manager. This General Manager, whether it's the Principal Executive or another employee, must successfully complete Avari Beauty's training program. Additionally, any staff, team members, or contractors who perform beauty services at an Avari Beauty location must hold the necessary licenses and certifications as approved by their state's Cosmetology State Boards. It's possible that the General Manager might also need to be licensed depending on state rules. Avari Beauty provides operational instructions in its Manual for training new employees and also offers suggested guidelines for hiring, though all hiring decisions are the franchisee's responsibility. The General Manager might also be asked to sign a confidentiality and non-compete agreement.