Davi Nails Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$68,300 - $177,000
Franchise Fee
$61,150
Total US Locations
401
Business Summary
Da Vi Nails Salon and Spa, L.L.C. offers franchises for two types of businesses: "Da Vi Nails" nail salons, which provide finger and toe nail products and services, and "Em Lash Studios" beauty salons, specializing in lashing, extending, threading, waxing, and facial services. These salons are primarily located within Walmart stores, operating under subleasing arrangements, but can also be found in other retail establishments like shopping malls. Da Vi Nails provides a "turn-key" operation, meaning the initial franchise fee covers securing the sublease, constructing improvements, and supplying necessary equipment and furnishings for the salon.
Corporate History
Da Vi Nails Salon and Spa, L.L.C.'s business history began with its owners forming California Nails USA, Inc. in October 2003, which then reorganized as Da-Vi International in February 2005. Until May 2008, Da-Vi International operated by licensing approximately 400 nail salons, often through subleasing agreements. After state regulatory agencies determined these arrangements constituted franchise relationships, Da-Vi International ceased offering licenses and began preparing to offer franchises. Da Vi Nails Salon and Spa, L.L.C. was organized in January 2010 and acquired Da-Vi International's assets and liabilities in March 2010, officially beginning to offer franchises in February 2010. In February 2019, Da Vi Nails expanded its offerings to include "Em Lash Studios."
Financial Overview
Investment Range
$68,300 - $177,000
Franchise Fee (Low)
$61,150
Franchise Fee (High)
$141,000
Equipment Costs (Low)
$58,650
Equipment Costs (High)
$138,500
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Da Vi Nails Salon and Spa, L.L.C.'s financial health has been highlighted as a concern, with a special risk disclosure stating that its financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. The company's financial statements show significant advances made to various affiliates, totaling over $23 million in 2023, which are unsecured and do not accrue interest, potentially impacting the company's liquidity and ability to fund operations or support its franchise system.
Financing Details
Da Vi Nails Salon and Spa, L.L.C. does not offer direct or indirect financing to its franchisees and does not guarantee their notes, leases, or other obligations. However, Da Vi Nails indirectly provides some financing by subleasing salon space to franchisees, for which it remains liable to the landlord.
Performance Metrics
Total US Locations
401
Franchised Units
401
Corporate Units
0
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
5
Litigation Summary
Da Vi Nails Salon and Spa, L.L.C. and its predecessor, Da-Vi International, have been involved in several legal actions concerning compliance with state franchise laws. In Virginia, Da-Vi International and David Truong settled with the State Corporation Commission in 2008 for violating the Virginia Retail Franchising Act by offering franchises without registration and failing to provide disclosure documents, incurring penalties. Later, in 2018, Da Vi Nails agreed to pay additional penalties for offering an unregistered franchise in Virginia in 2017 when its registration had lapsed. In California, Desist and Refrain Orders were issued against Da-Vi International, David Truong, and Vi Cao in 2009 and 2012 for violating the California Franchise Investment Law by selling unregistered licenses and subleases, which resulted in fines. In 2018, Da Vi Nails entered into a Consent Decree with the California Division of Business Oversight, paying a fine for offering and selling unregistered franchises. Da Vi Nails states that no other litigation is required to be disclosed.
Bankruptcy History
Da Vi Nails Salon and Spa, L.L.C. has no bankruptcy history to report for itself or any of its affiliates, predecessors, or key personnel, as stated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
3 years
Renewal Conditions
To renew, Da Vi Nails Salon and Spa, L.L.C. franchisees must provide written notice 6 to 12 months before their agreement expires and must not be in default of their franchise agreement or any other agreements with Da Vi Nails. They need to confirm the location's availability, complete any required renovations and modernizations to meet current brand standards, and sign Da Vi Nails's then-current renewal franchise agreement, which may have different terms. A renewal fee of $1,000 is required, along with signing a general release of claims against Da Vi Nails and its affiliates. Franchisees must also meet current qualification and training requirements. All renewal rights are subject to Da Vi Nails's underlying lease rights with Walmart or the retail mall.
Training & Support Program
Franchisor Assistance
Da Vi Nails Salon and Spa, L.L.C. offers pre-opening assistance, including helping franchisees find and secure an approved location (usually in a Walmart store) and providing architectural plans for the salon build-out. The franchise provides initial training for the operating principal and managers, along with on-site pre-opening supervision. Post-opening, Da Vi Nails provides merchandising, marketing, and advertising research data and advice, standardized cost and inventory control procedures, and updates on new industry developments. The franchisor also conducts periodic inspections to ensure compliance and, upon request, offers guidance on operating problems, purchasing, advertising programs, employee training, and administrative matters.
Initial Training Hours
10
Training Location
Salt Lake City, UT
Ongoing Support
After a Da Vi Nails Salon and Spa, L.L.C. franchise opens, it receives ongoing support such as merchandising, marketing, and advertising research data and advice, along with standardized cost and inventory control procedures. The franchisor also shares new industry developments and inspects salons periodically for compliance. Although not obligated, Da Vi Nails may offer advice on operating problems and, upon request, provides guidance and assistance with operating procedures, purchasing, advertising programs, employee training, and administrative matters.
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
limited
Territory Size Requirements
A Da Vi Nails franchise operates either a Da Vi Nails salon or an Em Lash Studio at a single, specific location, typically within a Walmart store or other retail facility. The territory granted is limited to this specific address, and no additional or exclusive territory is granted outside of this location. Da Vi Nails reserves the right to grant other franchises or operate company-owned outlets outside of the franchisee's specific salon address.
Staffing Notes
Da Vi Nails Salon and Spa, L.L.C. franchisees are responsible for hiring their own employees and must maintain a sufficient number of trained staff to meet operational standards. The business requires direct on-premises supervision by a manager who has completed the franchisor's training program. This manager cannot be involved with competing businesses and must sign a confidentiality and non-compete agreement. The manager is not required to have an ownership interest in the franchise. While the franchisor recommends, it does not require, the franchisee to personally supervise the business; however, the designated Operating Principal must devote substantially full-time effort to supervising and conducting the business.