Facialworks Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$435,600 - $1,143,700
Total US Locations
4
Business Summary
Facialworks operates as a facial bar and treatment studio, providing clean and non-toxic skincare and facial treatments, along with other related products and services. Facialworks offers franchises for both individual studios and for the development of multiple studios within a designated territory.
Corporate History
Facialworks Franchising LLC was established on January 9, 2023, in Delaware and began offering franchises in March 2023. Its parent company, Facialworks Holdings LLC, was established in February 2023. An affiliate, Skintologist, LLC, which was established in April 2012, owns the brand's trademarks and operates the company-owned Facialworks studios in California.
Financial Overview
Investment Range
$435,600 - $1,143,700
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$225,000
Equipment Costs (High)
$515,000
Working Capital
$59,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Facialworks Franchising LLC's financial statements raise concerns about its ability to provide services and support to franchisees. The company has limited cash, with only $50,000 as of December 31, 2023, and its financial activities are subject to significant risks. These risks include the potential inability to achieve its objective of opening and maintaining new franchises and a possible failure to secure additional funding for operations. The company's management is required to evaluate if there is substantial doubt about its ability to continue operating within one year.
Financing Details
Facialworks Franchising LLC does not offer any direct or indirect financing options. Franchisees will need to secure all necessary funding independently, as the franchisor does not guarantee any loans, leases, or other obligations.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
1,250
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Facialworks Franchising LLC has no litigation history to report as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
Facialworks Franchising LLC has no bankruptcy history to report as no bankruptcy information is required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Facialworks franchise, franchisees must adhere to several conditions. Facialworks franchisees need to be in full compliance with their current Franchise Agreement and provide 180 days written notice of their intent to renew. They must also sign the then-current Franchise Agreement and related agreements for the renewal term, which may have materially different terms. Additionally, franchisees are required to sign a general release in favor of Facialworks, pay a renewal fee, and remodel or upgrade their studio to meet the franchisor's latest standards and specifications. Franchisees must also ensure they have the legal right to continue occupying their studio location. All owners and their spouses must be in compliance with their agreements and personally guarantee the terms of the new renewal agreement.
Training & Support Program
Franchisor Assistance
Facialworks Franchising LLC provides extensive support to its franchisees both before and after opening. Before opening, Facialworks assists with granting the franchise and defining the territory, providing access to its confidential Operations Manual, and reviewing and approving site selections. It also offers lists of approved suppliers, signage, equipment, furniture, and fixtures. Facialworks identifies the franchisee's studio on its website and provides initial training for the managing owner and one manager. After opening, ongoing support includes supplemental training, ongoing communication of operating standards, marketing standards and approval, and updated approved vendor lists. Facialworks also coordinates an annual system conference and administers a brand development fund for system-wide marketing. The franchisor may also designate pricing and promotional requirements for services and products.
Initial Training Hours
40
Training Location
Newport Beach, California
Ongoing Support
After opening, Facialworks franchisees receive ongoing support including optional or required supplemental training sessions, communication of updated operating standards, and approval of marketing materials. Facialworks also provides updated lists of approved vendors and may coordinate an annual system conference. The franchisor administers a brand development fund for system-wide marketing efforts and may designate pricing and promotional requirements for the studio's services and products.
Franchise Requirements
Ideal Candidate Profile
Facialworks Franchising LLC seeks franchisees who, if an individual, or whose designated managing owner, if a corporate entity, will be personally responsible for the management and overall supervision of the studio. This managing owner must complete the franchisor's initial training program and be approved. While hands-on day-to-day participation is recommended, franchisees may hire an approved operating manager who meets specific standards, completes training, and signs confidentiality agreements. The studio must always have an approved managing owner or operating manager on-site.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Facialworks Franchising LLC defines its territories as generally a 3-mile radius around the studio location, travelable by road. However, the size can be smaller depending on factors like population density, demographics, and geographical boundaries. For studios located within shopping malls or similar facilities, the territory might be restricted to the physical boundaries of that specific facility. Territories can also be identified using zip codes, boundary streets, highways, county lines, or other recognizable demarcations.
Staffing Notes
Facialworks Franchising LLC requires franchisees to be solely responsible for hiring, managing, and supervising their own employees. For brand consistency, all employees must wear and maintain approved Facialworks uniforms and branded apparel. Franchisees are also responsible for ensuring that all products and services are prepared and served according to system standards. Each studio must always be managed and supervised on-site by either an approved Managing Owner or an Operating Manager who has completed the franchisor's initial training and signed a confidentiality agreement. Any other employees or agents with access to confidential information will also be required to sign a confidentiality agreement.