The Lash Lounge Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$384,797 - $794,490
Franchise Fee
$35,000
Min Cash Required
$40,000
Total US Locations
130
Business Summary
THE LASH LOUNGE® operates upscale salons that offer semi-permanent and temporary eyelash and other eye-enhancing services, as well as facial threading services. These salons also sell private label cosmetic and skin care products. Typical locations are found in or adjacent to major shopping malls, retail strip malls, shopping centers, or urban storefronts.
Corporate History
THE LASH LOUNGE® was initially operated by its predecessor, The Lash Lounge Franchise, LLC, a Texas limited liability company formed in September 2009, which began offering franchises in March 2010. The current franchisor, The Lash Franchise Holdings, LLC, a Delaware limited liability company, was formed on October 26, 2018. It acquired the assets of its predecessor in April 2020 and has been offering franchises under the THE LASH LOUNGE® trademark since then. The franchisor is part of a larger corporate family managed by The Riverside Company, a global private equity fund, which oversees various other franchise brands.
Financial Overview
Investment Range
$384,797 - $794,490
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Minimum Cash Required
$40,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$218,492
Equipment Costs (High)
$398,500
Working Capital
$70,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, THE LASH FRANCHISE HOLDINGS, LLC, has a negative members' deficit (negative equity) of $3,055,433 as of December 31, 2023. Additionally, its current liabilities of $4,368,280 significantly exceed its current assets of $1,638,743, resulting in a negative working capital of approximately $2,729,537. The franchisor explicitly notes this financial condition as a special risk in the FDD, stating that it 'calls into question the franchisor's financial ability to provide services and support' to franchisees.
Financing Details
THE LASH LOUNGE® does not offer direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
130
Franchised Units
126
Corporate Units
4
Avg Square Footage
1,358
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
THE LASH LOUNGE® has been involved in four litigation cases, all stemming from arbitration claims filed by franchisees against its predecessor, The Lash Lounge Franchise, LLC. Three of these cases were filed in June and September 2019 and settled in February and March 2020. These involved allegations of misrepresented salon construction and pre-opening training costs, fraudulent misrepresentation, and state law violations, with outcomes including settlements, franchisee continuation, system exit, development right termination, and financial payments from the franchisor. A fourth case was filed in March 2021 by a franchisee and two terminated franchisees, alleging fraudulent misrepresentation and state/federal law violations related to franchise sales. This case was settled in May 2021, involving the repurchase of undeveloped units, payments, temporary royalty relief, and complimentary training. No other litigation is required to be disclosed.
Bankruptcy History
THE LASH LOUNGE® has no bankruptcy history to report for itself or its key personnel. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a franchise agreement, THE LASH LOUNGE® franchisees must provide notice of intent to renew between 12 months and 180 days before the current term expires. Franchisees must be in good standing, having complied with all material obligations and satisfied all monetary debts to THE LASH LOUNGE®, its affiliates, and suppliers. The franchisee's salon must be renovated to meet the franchisor's then-current image and standards. Franchisees need to show they have the right to occupy the salon premises, meet current qualifications and training requirements, and sign THE LASH LOUNGE®'s then-current franchise agreement, which may have different terms including royalty and marketing fees. Additionally, the franchisee and all owners must sign a general release, and pay the required renewal fee of $3,000.
Training & Support Program
Franchisor Assistance
THE LASH LOUNGE® provides extensive support to its franchisees. Before opening, the franchisor assists with assigning a site selection area and approving the specific salon location. Franchisees receive initial training for up to two individuals, covering business aspects and on-site salon opening training. THE LASH LOUNGE® loans its operations manuals and offers pre-opening consultation on salon development, layout, equipment, staffing, purchasing, inventory, and marketing. It also helps with minimum service and retail pricing tiers. Ongoing support includes consultation and advice on new services and product developments, operations and management, advertising and marketing advice, and financial matters. The franchisor also communicates information about approved and designated suppliers.
Initial Training Hours
172
Training Location
Dallas, Texas
Ongoing Support
THE LASH LOUNGE® provides ongoing consultation and advice to franchisees on new services and product developments, salon operations and management, advertising and marketing strategies, and financial matters. The franchisor may also require franchisees and their designated employees, such as the General Manager, to attend additional mandatory courses, seminars, and training programs.
Franchise Requirements
Ideal Candidate Profile
THE LASH LOUNGE® seeks qualified individuals or entities. For single-unit operations, at least one owner must oversee general operations, and a General Manager must be designated to handle day-to-day operations. This General Manager, who may also be an owner, must devote their full-time efforts to the salon and successfully complete the franchisor's initial training program. The franchisor also looks for transferees who meet current educational, managerial, and business standards, possess good moral character, business reputation, and credit rating, have the aptitude to operate the business, and have sufficient equity capital.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
THE LASH LOUNGE® franchisees receive a Protected Area, typically a circular area surrounding their salon premises. This area contains a population of up to 40,000 individuals and will not exceed a maximum diameter of six miles (or a three-mile radius). However, this Protected Area excludes 'Closed Markets' such as hotels, resorts, airports, and other facilities serving a captive market.
Staffing Notes
THE LASH LOUNGE® requires that each salon be supervised by a General Manager who dedicates full-time efforts to day-to-day management and operations, without engaging in other substantial business activities. Franchisees must maintain a competent, fully certified, and trained staff, ensuring employees provide courteous service and adhere to the franchisor's uniform and appearance standards. Technicians providing services must comply with state licensing or certification requirements, such as being a licensed esthetician, cosmetologist, or nurse. The franchisor may also mandate continuing education for all technicians.