Risk Score
Pending analysis
Investment Range
$116,175 - $1,031,250
Franchise Fee
$39,000
Total US Locations
9
Business Summary
Sparkle Franchising LLC offers regional developer businesses that recruit, refer, and support unit franchises operating under the "Sparkle" and "Sparkle Grooming Co." trademarks. These individual unit franchises run wellness-focused dog grooming salons, providing routine hygiene and grooming services for pet owners to keep their pets clean, healthy, and happy.
Corporate History
Sparkle Franchising LLC, an Arizona limited liability company, was formed on December 18, 2023. The company began offering Sparkle Salon franchises in March 2024. Its parent company, Sparkle Grooming Corp., was formed on August 31, 2022, and has operated a Sparkle Salon in Gilbert, Arizona, since August 2023.
Financial Overview
Investment Range
$116,175 - $1,031,250
Franchise Fee (Low)
$39,000
Franchise Fee (High)
$39,000
Equipment Costs (High)
$5,000
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sparkle Franchising LLC's financial condition, as noted in the FDD's risk factors, raises questions about its ability to provide services and support to regional developers. The financial statements as of December 31, 2024, show a net loss of $1,096,146 and a member's deficit of $902,569, with current liabilities exceeding current assets.
Financing Details
Sparkle Franchising LLC does not offer any direct or indirect financing options. The company also does not guarantee any notes, leases, or obligations for its regional developers.
Performance Metrics
Total US Locations
9
Franchised Units
9
Corporate Units
0
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sparkle Franchising LLC has no litigation history to report as of the FDD issuance date.
Bankruptcy History
Sparkle Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Sparkle Franchising LLC regional developers must have substantially complied with their Minimum Development Obligation and all other terms of the Regional Developer Agreement during the initial term. They, along with their owners and spouses, must sign a general release form. The franchisor and regional developer must mutually agree on new Minimum Development Obligations for the extension period based on current market conditions, with the same cost per license. Regional developers must pay a renewal fee equal to 25% of the original Development Fee and sign the franchisor's then-current form of Regional Developer Agreement, which may include different terms and conditions, though certain key sections (Exclusivity, Term, Payments to Regional Developer, and Assignability) will remain consistent.
Training & Support Program
Franchisor Assistance
Before opening, Sparkle Franchising LLC provides its regional developers with an approximately two-day RD Training Program and the Franchisee Training Program. It also prepares and registers necessary disclosure documents for recruiting prospective unit franchisees, lends copies of the Regional Developer Manuals, and reviews/approves advertising materials. After opening, ongoing support includes additional or refresher training programs, webinars, and sales calls, continued access to Manuals, general guidance via bulletins, and specific guidance upon request (for a fee). Sparkle Franchising LLC also amends/maintains registrations for recruiting franchisees, approves prospective unit franchisees and their locations, reviews advertising materials, pays compensation owed under the Regional Developer Agreement, allows continued use of marks and confidential information, and indemnifies against trademark infringement disputes. The franchisor also approves advertising materials from advertising cooperatives and pays the regional developer's share of initial franchise fees and royalty fees.
Initial Training Hours
8
Training Location
Corporate headquarters in Gilbert, Arizona, or another designated location
Ongoing Support
After opening, Sparkle Franchising LLC provides ongoing support to its regional developers through additional or refresher training programs, including periodic webinars and sales calls. Regional developers are also required to attend a national business meeting or convention annually. The franchisor continues to lend copies of its Manuals and offers general guidance via bulletins or other written materials. Upon request, additional or special guidance, training, or assistance may be provided, though this may incur charges for the regional developer. The franchisor also amends and renews necessary documentation and registrations to allow regional developers to solicit prospective unit franchisees, reviews and approves advertising materials, and manages the approval process for prospective unit franchisees and their proposed locations.
Franchise Requirements
Ideal Candidate Profile
Sparkle Franchising LLC seeks regional developers who have the capacity to recruit prospective unit franchisees and provide ongoing support services within a defined development area. While not strictly required to personally participate full-time, the regional developer or a fully trained manager must be directly involved in day-to-day operations, utilizing their best efforts to promote and enhance the business. Ideal candidates should possess the necessary skills, qualifications, and economic resources to effectively operate the regional developer business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Sparkle Franchising defines Regional Developer territories, known as "Development Areas," based on criteria such as population demographics, the Regional Developer's ability to recruit new unit franchisees, and the number of Sparkle Salons the area can support. These Development Areas are mutually agreed upon by Sparkle Franchising and the Regional Developer. While there is no specific minimum or maximum geographic area, territories are typically defined by geographic areas like a state or county. A key aspect of the territory's size is the development obligation, which anticipates between 10 and 100 Sparkle Salons to be established within the Development Area.
Staffing Notes
Sparkle Franchising LLC recommends but does not require that regional developers personally participate full-time in the direct operation of their business. If the owner does not participate full-time, they are obligated to employ a fully trained Manager to operate the Regional Developer Business. The franchisor believes that an individual with an equity interest can best maintain quality and competence standards. The Operating Principal or a fully trained Manager must be directly involved in day-to-day operations and exert best efforts to promote the business. Any manager hired must complete the initial management-training course, and subsequent managers must be trained to franchisor standards, potentially incurring an additional fee.