Organic Bronze Bar Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$106,600 - $307,900
Franchise Fee
$20,000
Min Cash Required
$40,000
Total US Locations
12
Business Summary
Organic Bronze Bar offers franchises for studios that provide organic airbrush tanning, which is hand-sprayed using a formula made with all-natural and organic ingredients, free of harmful chemicals. These studios also offer spa services, skincare products, and other specialty items, along with complementary products and services to the public under the Organic Bronze Bar names and logos.
Corporate History
OBB Franchising LLC, the franchisor, was formed in Oregon on July 25, 2017. However, the Organic Bronze Bar concept began earlier, with an affiliate, Organic Bronze Bar Forest Heights, LLC, formed on November 18, 2011, operating a business similar to the franchise being offered. OBB Franchising LLC began offering franchises in August 2017.
Financial Overview
Investment Range
$106,600 - $307,900
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$32,000
Minimum Cash Required
$40,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$21,700
Equipment Costs (High)
$142,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Organic Bronze Bar had a net accumulated deficit of $204,496 as of March 31, 2023, and has experienced ongoing operating losses and negative cash flows from operations since it started. These financial challenges raise substantial doubt about Organic Bronze Bar's ability to continue operating. Management plans to address these issues by securing additional debt financing, obtaining more equity investments, and generating revenue from new franchising fees and royalty payments.
Financing Details
Organic Bronze Bar does not offer any direct or indirect financing options to its franchisees. This means franchisees will need to secure all necessary funding for their business setup and operations through third-party lenders or other sources.
Performance Metrics
Total US Locations
12
Franchised Units
10
Corporate Units
2
Avg Square Footage
1,350
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Organic Bronze Bar has had one disclosed legal matter. In November 2017, its affiliate OBB Organics, LLC and President, Danielle Van Auken, entered into a Consent Order with the State of Washington Department of Financial Institutions Securities Division. The Order stated that the affiliate and President offered and sold franchises in violation of the Washington Franchise Investment Protection Act by failing to register the offering, failing to provide a disclosure document, and failing to provide the basis for financial performance representations. The affiliate neither admitted nor denied the findings, agreed to stop violating the Act, and paid $3,125 in investigative costs to the Washington Securities Division. There is no other litigation required to be disclosed for Organic Bronze Bar.
Bankruptcy History
Organic Bronze Bar has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Organic Bronze Bar franchisees must meet several conditions. They need to provide written notice between three and six months before their initial term expires. Franchisees must have faithfully performed all obligations under their initial agreement and must not be in default. They are required to refurbish, remodel, or replace their studio and obsolete equipment to meet current brand standards. Additionally, they must sign a general release of claims against Organic Bronze Bar, agree to a new franchise agreement which may have materially different terms and conditions, and complete any required retraining.
Training & Support Program
Franchisor Assistance
Before opening, Organic Bronze Bar assists franchisees with designating their territory, analyzing the market for site feasibility, and approving the chosen site and lease. They provide standard construction plans, a schedule of interior finishes and equipment packages, and the Operations Manual with detailed procedures and guidelines. Organic Bronze Bar also provides a mandatory initial training program, lasting approximately 3 days, covering financial controls, marketing, service methods, and quality standards, held in Portland, Oregon. During operation, Organic Bronze Bar offers ongoing assistance, periodic inspections (in-person or remote), refresher training programs and seminars, and holds periodic conventions for franchisees. The franchisor administers advertising programs and may provide samples of local advertisements. Franchisees are required to use specific computer systems, including a Point of Sale (POS) and merchant processing system, and must comply with data security standards and security system requirements.
Initial Training Hours
42
Training Location
Portland, Oregon
Ongoing Support
After opening, Organic Bronze Bar franchisees receive ongoing assistance and training through various channels. The franchisor conducts periodic inspections of the franchise business, which can be done in person or remotely via video. Franchisees may receive additional training sessions at the franchisor's training center or other approved locations, though they are responsible for their own expenses for such training. Organic Bronze Bar also provides refresher training programs or seminars from time to time, which franchisees or their managers may be required to attend. These programs are provided without charge for tuition, but franchisees cover travel and living expenses. The franchisor holds periodic conventions for its franchise system, which franchisees are encouraged to attend at their own expense. Organic Bronze Bar also sends promotional materials and bulletins on new sales and marketing techniques and products. The franchisor administers the advertising program and may offer recommendations for pricing. Franchisees are required to use specific computer systems, including a POS and merchant processing system, and must comply with data security standards and security system requirements, with access to their systems for monitoring.
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
protected
Staff Count
3
Territory Size Requirements
Organic Bronze Bar franchisees are granted a protected territory where the franchisor will not establish or allow other Organic Bronze Bar facilities. This territory is defined as the lesser of a 5 driving-mile radius from the franchise premises or an area with approximately 100,000 to 250,000 people. The specific territory is identified using zip code, political, or geographical boundaries.
Staffing Notes
Organic Bronze Bar locations require franchisees to train their employees and independent contractors to meet standards outlined in the Operations Manual. Franchisees must hire efficient, competent, sober, and courteous staff, paying their wages, commissions, and other compensation without franchisor liability. They are exclusively responsible for monitoring, supervising, and controlling employee scheduling, performance, and efficiency, and for maintaining complete and accurate employee records, clearly documenting that employees are not franchisor employees. All employees whose duties involve customer service must be literate and fluent in English. Organic Bronze Bar prohibits hiring anyone convicted of fiduciary misconduct, unlawful sexual conduct, any felony, or crimes of moral turpitude, or who is on probation or parole. Franchisees must comply with all state and federal employment laws, including wage and hour laws, and are responsible for creating their own employee and HR manuals tailored to local legal jurisdictions.