Glosshouz Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$411,500 - $1,852,000
Franchise Fee
$20,000
Min Cash Required
$20,000
Total US Locations
1
Business Summary
Glosshouz operates full-service or medspa-focused Spa Centers, offering luxurious amenities in a sophisticated setting. These Spa Centers provide a comprehensive range of aesthetic and wellness services including brow and eyelash services, facial treatments, hair removal, hair and nail salon services, makeup application, massage therapy, medical aesthetic injectable treatments, skincare treatments, and body treatments. Clients can also opt for specialty services like advanced injectables, laser treatments, body contouring, medical weight loss, and hormone replacement therapy. Glosshouz Spa Centers also feature a loyalty-building monthly membership program called BFF Savings Program and may offer food and beverage refreshments along with related retail products.
Corporate History
The Glosshouz brand began its operational history through its affiliate, LVE Enterprises, LLC, which was organized in January 2015. This affiliate opened and operated a Glosshouz spa center in Centennial, Colorado, starting in May 2016. Building on this operational experience, Glosshouz USA LLC was formed in September 2022 to serve as the franchisor and began offering Glosshouz franchises in 2023. Glosshouz USA LLC does not operate its own spa centers, relying on the affiliate's experience and licensing its intellectual property from LVE Enterprises, LLC.
Financial Overview
Investment Range
$411,500 - $1,852,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$20,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$249,100
Equipment Costs (High)
$961,500
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Glosshouz USA LLC's financial statements for 2023 and 2022 received an unqualified audit opinion, indicating they are presented fairly in all material respects. Management has assessed its financial position and concluded that there are no conditions or events that raise substantial doubt about Glosshouz USA LLC's ability to continue as a going concern within one year after the financial statements were issued. This suggests that Glosshouz USA LLC is considered to have a stable financial outlook by its management and auditors.
Financing Details
Glosshouz does not offer any direct or indirect financing to franchisees. This means Glosshouz will not provide loans, guarantee obligations, or help finance any part of the franchisee's initial investment or ongoing costs. Franchisees are responsible for securing all their own funding from external sources.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
2,967
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Glosshouz has no litigation history to report in Item 3 of its FDD.
Bankruptcy History
Glosshouz has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Glosshouz franchise, franchisees must substantially comply with their current agreement and all system standards. They need to provide notice of their intent to renew between 9 and 12 months before the current term expires. Franchisees are required to update and renovate their Spa Center to meet the current standards for new locations, comply with the latest training requirements, and maintain or secure an acceptable premises. Additionally, they must sign the then-current successor franchise agreement, which may have materially different terms, pay a successor franchise fee equal to 50% of the then-current initial franchise fee, and sign a general release of claims against Glosshouz.
Training & Support Program
Franchisor Assistance
Glosshouz provides extensive support to its franchisees, starting with pre-opening assistance that includes site selection guidelines, prototypical plans, and designated construction management services for a fee. Franchisees receive mandatory initial training, access to the Brand Standards Manual, and a package of opening inventory. Glosshouz also helps with technology system setup and developing grand opening marketing plans, including a $5,000 digital campaign managed by the franchisor. For medspa-focused centers, Glosshouz may recommend or require designated Medical Providers or entities. Ongoing support includes advice on operations, continuous access to the Brand Standards Manual, information on new services, maintenance of the Glosshouz online presence, and administration of the BFF Savings Program. Glosshouz may also conduct inspections and audits, review new products/suppliers, and offer additional training and optional marketing services for a fee.
Initial Training Hours
135
Training Location
Online, at Glosshouz's affiliate-owned location in Centennial, Colorado, and at the franchisee's Spa Center.
Ongoing Support
Glosshouz provides ongoing advice and guidance regarding Spa Center operations, and continually updates its Brand Standards Manual which franchisees access. Franchisees also receive information on new services, products, methods, and procedures. Glosshouz develops and maintains an overall online presence for the brand and administers the BFF Savings Program. The franchisor reviews and approves new suppliers, products, and services. Additionally, Glosshouz may offer mandatory or optional additional training sessions, meetings, and conventions, which may incur fees. Optional marketing design and local digital marketing services are also available for a fee.
Franchise Requirements
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
exclusive
Territory Size Requirements
Glosshouz typically defines territories as an area no more than a five-mile radius around the Spa Center. However, the size can vary, being either smaller or larger, based on the population, demographics, and geography of the market. Glosshouz also reserves the right to define territories using other boundaries, such as natural landmarks or Zip codes, with these factors measured using data deemed reliable by Glosshouz or through third-party services.
Staffing Notes
Glosshouz requires each Spa Center to have a Spa Manager responsible for overall operations and daily oversight. If the Spa Manager is not on-site, a trained assistant manager must be present. The Spa Manager can be an employee or an owner and must successfully complete Glosshouz's training program. Additionally, Spa Centers require various staff, including Licensed Personnel (such as cosmetologists, massage therapists, and estheticians) and, for medical aesthetic services, Licensed Medical Providers (physicians, nurses, or physician assistants). The Medspa-focused format has a smaller staff count compared to full-service centers as it does not offer hair and nail services. All staff must hold the necessary licenses and certifications as required by applicable laws.