Frenchies logo

Frenchies Franchise

Audited Financials
Beauty & Personal CareEst. 2015Southlake, TX
www.frenchiesnails.com

Risk Score

Pending analysis

Investment Range

$452,126 - $507,033

Franchise Fee

$45,000

Total US Locations

24

Business Summary

Frenchies operates retail studios that offer hand and foot care services, including manicures and pedicures, for men and women, and sells related products and services. Each Frenchies Studio features a distinctive interior and exterior design, decor, and color scheme, and follows proprietary operational and customer service standards, specifications, and procedures established by the franchisor. These studios are typically located in commercial retail areas and range between 1,200 to 1,800 square feet.

Corporate History

Frenchies, LLC was formed in Colorado on March 11, 2015, and began offering franchises in April 2015. It operates under its corporate name. Frenchies, LLC is a subsidiary of BCC Services Intermediate Holding Company, which is part of BCC Services Holding Company, controlled by The Riverside Company, a private equity fund. An affiliate, Frenchies Revolution, LLC, formed in 2013, owns and operates a company studio that opened in 2014. Frenchies, LLC is also affiliated with other franchise brands, including Lash Lounge and Bishops, along with several other brands managed by The Riverside Company.

Financial Overview

Investment Range

$452,126 - $507,033

Franchise Fee (Low)

$45,000

Franchise Fee (High)

$50,000

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$67,132

Equipment Costs (High)

$73,845

Working Capital

$21,420

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The franchisor's financial condition, as noted in the special risks section of the FDD, raises concerns about its ability to provide services and support to franchisees. Specifically, the franchisor's financial statements (Frenchies, LLC's own financials) showed a negative equity of $(3,055,433) as of December 31, 2023, as referenced in the Virginia State Addendum.

Financing Details

Frenchies does not offer any direct or indirect financing to franchisees to help them establish their business, nor does it guarantee their notes, leases, or other obligations.

Performance Metrics

Total US Locations

24

Franchised Units

23

Corporate Units

1

Avg Square Footage

1,500

Franchising Since

2015

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew, Frenchies franchisees must provide notice of their intent to renew between 180 days and 12 months before their current agreement expires. They must be in good standing, having complied with all material terms of the franchise agreement and satisfied all monetary obligations to Frenchies, its affiliates, and third-party suppliers. Franchisees are also required to renovate their studio to meet Frenchies' then-current image requirements, demonstrate their right to possess the premises (or secure an approved alternate site), comply with current qualifications and training requirements, and sign Frenchies' then-current franchise agreement (which may contain different terms and fees). Additionally, the franchisee and each owner must sign a general and full release in favor of Frenchies and its affiliates, and pay a renewal fee of $3,000.

Training & Support Program

Franchisor Assistance

Frenchies provides extensive assistance to its franchisees. Before opening, Frenchies helps with site selection and approval, and offers a two-stage initial training program for up to three individuals, which includes virtual, in-person, and on-site Studio Opening Training at the franchisee's location. Franchisees also receive a copy of Frenchies' confidential Operations Manuals and pre-opening consultation on studio development, operations, layout, furnishings, equipment, employee recruitment, selection, training, purchasing, inventory, and marketing. Frenchies also sets minimum service and retail pricing for services and products. Once open, Frenchies offers ongoing consultation and advice, including updates on new services and products, operational and management guidance, advertising and marketing support, and financial advice. Frenchies also communicates information about approved suppliers.

Initial Training Hours

56

Training Location

Virtual and/or Dallas, Texas, and the franchisee's Studio location

Ongoing Support

After opening, Frenchies provides ongoing consultation and advice to its franchisees on new service and product developments, operational and management instruction, advertising and marketing strategies, and financial matters. This support is delivered through various channels, including studio visits, meetings, seminars, conferences, and electronic or printed materials. Frenchies also communicates information about approved suppliers. Franchisees must ensure their General Manager and other designated employees attend additional mandatory courses, seminars, and training programs, with tuition and travel expenses borne by the franchisee. Technicians are also required to meet Frenchies' continuing education and recertification requirements. An annual convention or regional meeting is also mandatory for at least one representative. Frenchies may require additional on-site assistance if a franchisee fails quality inspections or has ongoing quality concerns. Additionally, Frenchies operates an intranet/extranet system to facilitate communication and provide updates.

Franchise Requirements

Ideal Candidate Profile

Frenchies does not explicitly outline an ideal candidate profile in Item 1. However, Item 15 states that if the franchisee is a business entity, at least one owner must oversee the general operations and business activities of the Studio. Additionally, a General Manager, who may or may not be an owner, must be designated to oversee day-to-day operations and devote full-time energy and best efforts to managing, operating, promoting, and growing the business. Both the designated owner and the General Manager must successfully complete Frenchies' initial training program.

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

Each Frenchies franchise location will be assigned a "Protected Area" within a designated "Site Selection Area" after the specific studio site is approved. This Protected Area typically forms a circle around the studio, encompassing a population of up to 40,000 individuals, and will not exceed a maximum diameter of six miles (or a three-mile radius). Certain venues known as "Closed Markets," such as hotels, resorts, airports, public facilities, college and school campuses, military bases, and other mass gathering locations, are excluded from this Protected Area. For multi-unit developers, Site Selection Areas are assigned within a Metropolitan Statistical Area (MSA).

Staffing Notes

Frenchies requires each studio to be supervised by a General Manager who devotes full-time energy to the business. The Managing Owner, who must hold at least a 10% ownership interest in the franchise, is responsible for overseeing the General Manager. Both the Managing Owner and the General Manager must successfully complete Frenchies' initial training and any additional required training programs. Franchisees must maintain a competent, conscientious, fully certified, and trained staff who provide courteous service and adhere to Frenchies' minimum standards, including uniform policies and appearance guidelines. Technicians providing services that require licenses or certifications must also complete any mandated continuing education and recertification courses.