Regal Nails Salon & Spa Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$172,722 - $720,666
Franchise Fee
$25,000
Total US Locations
538
Business Summary
Regal Nails Salon & Spa operates full-service nail salons that primarily offer manicures, pedicures, and related services. These salons are typically located within Walmart stores or other large retail centers. Franchisees may also be authorized to offer waxing services, and in limited, specific circumstances, eyelash extension services. The core business of a Regal Nails Salon & Spa location remains a full-service nail salon.
Corporate History
Regal Nails, Salon & Spa, LLC was formed in Nevada on September 30, 2005, and began offering franchises for Regal Nails Salon & Spa nail salons on April 1, 2006. The company expanded on January 1, 2011, by acquiring the rights and obligations as franchisor for Regal Nails & Spa outlets from its former affiliate, Regal Nails Select, LLC. Regal Nails, Salon & Spa's predecessor, Regal Nails, LLC, was established in Louisiana in 1996 and offered franchises for "Regal Nails" salons from 1997 to 2005. By March 1, 2008, all "Regal Nails" franchise agreements and subleases were transferred to Regal Nails, Salon & Spa, LLC, with these locations either already operating or soon to operate as "Regal Nails Salon & Spa" salons. Regal Nails, LLC no longer offers new franchises and sold its four company-owned salons in California.
Financial Overview
Investment Range
$172,722 - $720,666
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Equipment Costs (Low)
$150,000
Equipment Costs (High)
$572,249
Working Capital
$13,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Regal Nails Salon & Spa's financial condition, as reflected in its financial statements, raises questions about its financial capacity to provide services and support to its franchisees.
Financing Details
Regal Nails Salon & Spa does not offer direct financing to franchisees or guarantee any of their loan obligations. However, it provides indirect financing by subleasing salon sites to franchisees, for which Regal Nails Salon & Spa remains responsible to the primary landlord. This indirect financing specifically covers rents under the sublease, but not equipment, fixtures, inventory, or supplies. The typical sublease term is 60 to 66 months, with the possibility of shorter or longer terms depending on negotiations and landlord approval. Franchisees are also required to pay a security deposit equivalent to the last two months' Monthly Fee, along with any applicable utility and common area maintenance charges. This security deposit does not accrue interest and may be used by Regal Nails Salon & Spa to cover overdue obligations or damages.
Performance Metrics
Total US Locations
538
Franchised Units
537
Corporate Units
1
Avg Square Footage
800
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Regal Nails Salon & Spa has been involved in five disclosed litigation cases. Three of these are recent collection actions filed against former franchisees in 2020, 2023, and 2024 for outstanding debts. Additionally, there are two older cases involving public agencies. In 2007, the Commonwealth of Virginia settled allegations that Regal Nails, LLC (a predecessor) and its General Manager, Quy T. Ton, failed to properly disclose and register franchisees, resulting in monetary penalties. In 2005, the California Department of Corporations issued a desist and refrain order against Regal Nails, LLC and Quy T. Ton for offering and selling unregistered franchises in California.
Bankruptcy History
Regal Nails Salon & Spa has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
3 years
Renewal Conditions
To renew their franchise agreement, Regal Nails Salon & Spa franchisees must ensure their salon lease is renewed and provide 180 days' advance written notice of their intent to renew. They must be in full compliance with all franchise and other related agreements, and satisfy all monetary obligations, including any for other salon locations. Franchisees are required to meet current system, qualification, and training standards, sign a new franchise agreement (which may have materially different terms), execute a general release, and pay a Successor Franchise Fee. A key condition is to modify the salon to meet Regal Nails Salon & Spa's then-current standards, with the franchisor being the sole judge of what modifications are necessary to achieve an "as new" condition.
Training & Support Program
Franchisor Assistance
Regal Nails Salon & Spa provides comprehensive assistance to its franchisees. Before opening, this includes helping to locate, lease, and sublease a site (for locations where Regal Nails Salon & Spa is the party tenant to the lease), or reviewing and approving franchisee-secured leases. The franchisor arranges for salon build-out by an approved contractor, and furnishes, equips, decorates, stocks, and tests the salon as part of the Snow White Package. Franchisees and their managers receive a mandatory 3-day initial orientation/training program at headquarters. Regal Nails Salon & Spa also assists with Grand Opening guidance, identifies and helps obtain required Commercial General Liability, Professional Liability, and limited Property insurance, and lends a Confidential Operations Manual. Ongoing support includes periodic on-site quality assurance visits with written reports, replacement of defective Snow White Package items within one year, and assistance with advertising and promotional efforts. Regal Nails Salon & Spa provides forms for monthly sales reporting, introduces new products and techniques, offers additional training as needed, provides operational guidance for maintenance and repair matters (at franchisee cost), offers guidance on selling the salon, furnishes updates to the Confidential Operations Manual, maintains a toll-free customer complaint number, defends its trademarks, and conducts pre-renewal inspections.
Initial Training Hours
15
Training Location
Baton Rouge, LA
Ongoing Support
Regal Nails Salon & Spa provides ongoing support after opening through periodic on-site quality assurance visits, which include written reports and advice for correcting deficiencies. The franchisor offers a one-year limited warranty for defective Snow White Package items. It also assists with advertising and promotional efforts, provides forms for monthly sales reporting, and introduces new products and techniques. Additional training is provided as deemed necessary. Operational guidance and assistance with maintenance and repair matters are available upon request, though at the franchisee's cost. Regal Nails Salon & Spa also offers guidance regarding the possible sale of the salon, furnishes changes to the Confidential Operations Manual, maintains a toll-free customer complaint number for resolution at the franchisee's expense, and defends its trademarks. Prior to renewal, the franchisor inspects the salon and provides a list of necessary rejuvenation and upgrade requirements.
Franchise Requirements
Ideal Candidate Profile
Regal Nails Salon & Spa does not require franchisees to personally operate the business. However, franchisees are ultimately responsible for the salon's operation. An ideal Regal Nails Salon & Spa franchisee demonstrates good moral character, a strong reputation, a good credit rating, sufficient financial capability, and competent business qualifications. They must operate the salon according to the brand's high-quality standards to promote its goodwill. Franchisees must be familiar with and comply with all applicable state and local laws and licensing requirements for operating a nail salon, including those for nail technician licensing, health, safety, and hazardous chemicals. If not personally operating, the franchisee must inspect the salon weekly and ensure an appropriately licensed, trained, and non-competing on-premises manager is hired. Individuals owning a significant interest in the franchised entity must sign relevant agreements, including non-competition covenants.
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
Non-Exclusive
Territory Size Requirements
Regal Nails Salon & Spa defines the franchisee's territory as the physical confines of the salon premises, specifically the four walls of the designated address. Franchisees do not receive an exclusive territory beyond these boundaries and cannot prevent Regal Nails Salon & Spa or other franchisees from opening or operating within the same shopping center or in close proximity.
Staffing Notes
Regal Nails Salon & Spa does not specify a typical staff count. However, if the franchisee chooses not to personally operate the salon, they must hire and maintain an on-premises manager. This manager must be appropriately licensed by the state board, successfully complete Regal Nails Salon & Spa's training program, and sign a Non-Competition and Confidentiality Agreement. Additionally, for locations within Walmart stores, franchisees are responsible for conducting background checks on all employees as required by Walmart. Franchisees are also solely responsible for ensuring all staff, including themselves, obtain and maintain the necessary state and local licenses to perform nail technician or salon operator services.