Lice Clinics Of America Franchise

Financing Details

Larada Sciences, Inc. may, at its sole discretion, offer installment payment plans to qualified franchisees for the Franchise Fee. The specific terms of these plans depend on factors like the number of territories purchased, the timeline for opening clinics, and the franchisee's creditworthiness. Any installment plan requires a minimum 5% down payment, includes at least a 10% finance charge, and has a maximum term of 48 months. Larada Sciences, Inc. does not charge interest for this financing, but applies an 18% late fee for overdue payments. All Franchise Fees paid under an installment plan are non-refundable.

Litigation Summary

Larada Sciences, Inc. has been involved in several legal matters. In 2017 and 2018, the company settled governmental actions in California, Virginia, and Washington. These settlements addressed allegations of unregistered franchise offerings and failure to provide proper disclosure documents, resulting in administrative penalties, investigatory costs, and offers of rescission to affected franchisees, some of whom accepted. More recently, between October 2022 and February 2023, Larada Sciences, Inc. filed three separate lawsuits against franchisees (Martha Brown, Jacklyn O'Connell and Disentangle, LLC, and Sharon Rizzuto) in Utah courts, primarily to collect royalty payments.

Renewal Conditions

To renew, Lice Clinics of America franchisees must provide written notice of their intent to renew between 6 to 12 months before their current agreement ends. They must sign the then-current form of franchise agreement, which may have different terms and higher fees, and comply with all modernization requirements, with costs not exceeding $15,000 every five years. Franchisees must not be in default of their agreement, have met all financial obligations on time, and have renewed their lease for the renewal period. They also need to comply with current training requirements, pay a $5,000 renewal fee, and sign a general release of claims.

Staffing Notes

Lice Clinics of America requires franchisees to employ enough competent and trained staff to ensure efficient customer service. The franchise does not act as a joint employer, and franchisees have full control over their labor relations, including hiring, training, and wages. For operational roles, either the franchisee, another owner, or a Clinic manager must dedicate full-time effort to managing the Lice Clinics of America clinic and provide direct, on-site supervision. If the franchisee or owner is not actively managing, an on-premises manager is required and must attend initial owner training before the clinic opens. This manager is not required to have equity in the business. All owners and the Clinic manager (if applicable) must complete initial owner training and device training, receiving certification for device usage. Up to four people can attend owner training for a single fee, and device training costs $300 per person certified. Additionally, franchisees must complete initial QuickBooks (P&L) training from an approved supplier for $300, with an annual refresher course also costing $300 or less. Lice Clinics of America also holds periodic franchise conventions, which franchisees are expected to attend. The device must only be operated by certified operators who strictly follow specified methods and procedures.