SKIN EXPERTS by Brentwood Spa logo

SKIN EXPERTS by Brentwood Spa Franchise

Audited Financials
Beauty & Personal CareEst. 2024West Hollywood, CA
www.skinexperts.com

Risk Score

Pending analysis

Investment Range

$375,100 - $865,100

Franchise Fee

$34,500

Min Cash Required

$20,000

Total US Locations

3

Business Summary

SKIN EXPERTS by Brentwood Spa® operates businesses that offer skincare services and products to the public. These spas provide a range of skincare services, including facials, and sell proprietary QUL skincare products, along with skincare-related equipment and devices. The business system emphasizes a strong brand image, comprehensive training, customer service standards, and membership programs. Locations are typically in Class A or B retail centers and range from 1,400 to 2,500 square feet.

Corporate History

Skin Experts By Brentwood Spa Franchise Inc. was formed on January 16, 2024, in Delaware with the sole purpose of offering SKIN EXPERTS by Brentwood Spa® franchises, beginning in 2024. The company is a wholly-owned subsidiary of Kul Holdings Inc., which was incorporated in 2021. An affiliate, Brentwood Spa Inc. (BSI), has been operating SKIN EXPERTS by Brentwood Spa® businesses since 2022 and currently has three locations. Other affiliates, Brentwood Spa Trademark Inc. (BSTI), Shelley Hancock Consulting Inc. (SHCI), and Skin Experts Pro By Brentwood Spa Inc. (SEPI), own the trademarks, sell equipment and provide training, and sell products, respectively, but do not operate or franchise the spa business.

Financial Overview

Investment Range

$375,100 - $865,100

Franchise Fee (Low)

$34,500

Franchise Fee (High)

$39,500

Minimum Cash Required

$20,000

Equipment Costs (Low)

$165,000

Equipment Costs (High)

$530,000

Working Capital

$35,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Skin Experts By Brentwood Spa Franchise Inc. is a newly formed company, incorporated on January 16, 2024, with minimal operations prior to January 30, 2024. Its financial condition, as reflected in its financial statements, raises concerns about its ability to provide services and support to franchisees. The company has a startup balance sheet as of January 30, 2024, showing $75,000 in cash contributed by its sole stockholder, Kul Holdings, Inc. Kul Holdings, Inc. has committed to providing financial support to Skin Experts By Brentwood Spa Franchise Inc. for at least the next twelve months from the date the financial statement was issued.

Financing Details

Skin Experts By Brentwood Spa Franchise Inc. does not offer direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other financial obligations for franchisees. However, the franchisor may assist franchisees by arranging sources of third-party financing, but it will not receive any payment or consideration for doing so.

Performance Metrics

Total US Locations

3

Franchised Units

0

Corporate Units

3

Avg Square Footage

1,950

Franchising Since

2024

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

Skin Experts By Brentwood Spa Franchise Inc. requires franchisees to meet several conditions to renew their franchise agreement for an additional 10-year term. Franchisees must provide timely notification, not be in default of any license provisions for their business, and not have committed two or more defaults in the preceding 24 months, even if those defaults were cured. They must also sign the franchisor's then-current franchise agreement and a renewal addendum, which may include materially different terms. A non-refundable renewal fee must be paid, and franchisees must sign a general release of claims. Additionally, franchisees may be required to attend additional training at the franchisor's discretion.

Training & Support Program

Franchisor Assistance

Before opening, Skin Experts By Brentwood Spa Franchise Inc. assists franchisees by designating a protected territory and premises selection area, and providing a recommended layout for the location. They grant electronic access to their regularly updated Manuals and provide names of approved suppliers with specifications. Franchisees and their key staff receive an Initial Training Program covering all business aspects. The franchisor may provide sales brochures at the franchisee's expense and assists with state and local licensing requirements (though this remains the franchisee's responsibility). On-site assistance is provided for 5 days before and 5 days after opening, and initial equipment, devices, and inventory are supplied. During operation, Skin Experts By Brentwood Spa Franchise Inc. provides general advice and guidance, including daily, weekly, and one-on-one online training sessions. They coordinate periodic training programs and conduct mystery shopper inspections or anonymous evaluations, offering feedback on compliance. The Manuals are continuously updated, and inventory is supplied. The franchisor may suggest retail prices for products and services (though franchisees set their own) and helps with preparing a marketing growth plan.

Initial Training Hours

110

Training Location

Online and in-person at corporate or franchised spas in Brentwood, California, Lincoln, Nebraska, or Papillion, Nebraska

Ongoing Support

After opening, Skin Experts By Brentwood Spa Franchise Inc. provides ongoing support through daily (excluding weekends and holidays), weekly, and one-on-one online training sessions. The franchisor coordinates and conducts periodic training programs as deemed necessary. It performs mystery shopper inspections or anonymous evaluations of the franchised businesses periodically, providing feedback on compliance with System standards. The Manuals are regularly updated, and inventory is supplied to franchisees. Additionally, Skin Experts By Brentwood Spa Franchise Inc. assists franchisees with preparing a marketing growth plan.

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

Territory Size Requirements

Skin Experts By Brentwood Spa Franchise Inc. defines its protected territories based on a population of approximately 200,000 persons. However, the territory will not extend more than 30 miles from the physical location, even if the population within that radius is less than 200,000.

Staffing Notes

Skin Experts By Brentwood Spa Franchise Inc. requires either the franchisee (or Principal Owner) or a hired general manager to devote full-time efforts (at least 40 hours per week) to the day-to-day operations and development of the franchised business. All estheticians must be licensed in the state where they operate. The franchisee is responsible for hiring and training the necessary staff to run the business.