The Now Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$476,459 - $813,109
Franchise Fee
$35,000
Total US Locations
64
Business Summary
THE NOW FRANCHISE, LLC offers franchises for massage therapy Boutiques that promote, offer, and provide massage therapy sessions, herbal therapy, crystal healing, and other authorized Boutique-related services. These Boutiques also sell related products for the home and body. All services utilize THE NOW mark and a proprietary system of business operations. The Boutiques operate on an ongoing membership model with clients, and all massage-related services must be provided by licensed Massage Therapists. Franchisees must appoint a Lead Therapist to ensure all staff are properly trained.
Corporate History
THE NOW FRANCHISE, LLC was formed as a Delaware limited liability company on May 9, 2019. It began conducting business under its corporate name and the THE NOW mark, and started offering franchises for Boutiques, in July 2019. The company's parent is The Now Parent, LLC, formed in June 2019. An affiliate, TheNow, LLC, which was formed earlier on January 20, 2015, owns the Proprietary Marks and operates four affiliate-owned Boutiques, representing the original concept that the franchise system is based upon.
Financial Overview
Investment Range
$476,459 - $813,109
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$85,000
Equipment Costs (High)
$120,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
THE NOW FRANCHISE, LLC has reported accumulated losses and recurring net losses as of June 30, 2024. Despite these challenges, the company is actively pursuing new franchise agreements. Its ownership group has stated an intention to continue providing financial support for at least one year from the financial statements' issuance date, aiming to generate sufficient cash flow for ongoing operations and meet liquidity needs. THE NOW FRANCHISE, LLC's financial statements have been prepared on a going concern basis, acknowledging that the company's activities involve significant risks and depend on continued financial backing from its owners and the market acceptance of its franchise offerings.
Financing Details
THE NOW FRANCHISE, LLC's affiliate, Park West Financial, Inc. (PWF), may offer financing to qualified franchisees specifically for construction costs of a The Now Boutique. These loans typically range from $250,000 to $600,000. Repayment starts with interest-only payments on the initial disbursement, followed by principal and interest payments beginning 12 months after the initial funding date. Principal payments are amortized over 48 months, with the full loan amount due 60 months after initial funding. The interest rate is fixed, as determined by PWF. Loans are secured by all assets of the franchised Boutique, and all partners, members, or shareholders must personally guarantee the Promissory Note. Franchisees can prepay the loan in full at any time without penalty, unless they are in default. If PWF assigns the Promissory Note to a third party, the franchisee may lose certain defenses against PWF in a dispute. Aside from this specific offering, THE NOW FRANCHISE, LLC and its affiliates do not offer direct or indirect financing, nor do they arrange financing from other sources or guarantee third-party obligations.
Performance Metrics
Total US Locations
64
Franchised Units
60
Corporate Units
4
Avg Square Footage
2,675
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
THE NOW FRANCHISE, LLC has one disclosed litigation case, "John R. Ehrman v. Jason Post, et. al.", which was filed on December 10, 2019. The lawsuit was brought against Jason Post, THE NOW FRANCHISE, LLC's CEO, and two affiliates, Post Investment Group, LLC and Post Real Estate Group, Inc., alleging breach of oral partnership, breach of contract, misrepresentation, and breach of fiduciary duty. The defendants deny these allegations. The case was ordered to arbitration in June 2022. As of June 7, 2023, the parties reached a confidential binding agreement to resolve their disputes, and a written settlement agreement is currently being negotiated, with the arbitration proceeding remaining open pending finalization. THE NOW FRANCHISE, LLC itself is not a party to this particular litigation.
Bankruptcy History
THE NOW FRANCHISE, LLC has no bankruptcy information required to be disclosed in Item 4, indicating that the franchisor and its key personnel do not have a bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise relationship, THE NOW FRANCHISE, LLC franchisees must provide timely notice (between 6 and 12 months before the current term ends). They must not be in default of their Franchise Agreement or any other agreements with the franchisor or its affiliates, and must have consistently complied with all operating standards. Franchisees need to fulfill all monetary obligations to the franchisor and its affiliates, complete any required maintenance, refurbishing, renovating, and remodeling of their Boutique to meet current brand standards, sign the then-current form of franchise agreement (which may have different terms), pay a renewal fee of $10,000, and sign a general release of claims. They must also maintain possession of the franchise premises.
Training & Support Program
Franchisor Assistance
THE NOW FRANCHISE, LLC provides comprehensive support to its franchisees. Before opening, the franchisor offers site selection guidelines and assistance, reviews proposed leases and purchase agreements, and defines the Designated Territory. Franchisees receive access to proprietary Manuals, a list of required items and approved suppliers, and approval for their Boutique's layout, design, equipment, furniture, and fixtures. Initial training includes remote online sessions, 4 to 5 days of corporate training at the headquarters (Los Angeles, CA, or other designated facilities), and 5 to 7 days of on-site training at the franchisee's location before opening. After opening, THE NOW FRANCHISE, LLC may offer and require additional training (up to 5 days annually) and continuing consultation via phone, fax, or intranet. They also approve advertising materials, new products, and suppliers, provide pricing guidelines, and may schedule annual conferences. Franchisees' contact information is displayed on the brand's website, and they contribute to and benefit from a Brand Development Fund. The franchisor maintains a System Site for updates, webinars, and communication, conducts inspections and audits, and researches new products and services for the system.
Initial Training Hours
122
Training Location
Corporate headquarters in Los Angeles, CA or other designated training facility; on-site at the franchisee's Premises.
Ongoing Support
After opening, THE NOW FRANCHISE, LLC franchisees can expect ongoing support including optional (and sometimes required) additional training programs and refresher courses, typically up to five days annually. The franchisor provides continuous consultation and advice on managing and operating the business through various channels like phone, fax, and intranet. Additional on-site assistance may be available for a fee. THE NOW FRANCHISE, LLC also handles the approval or disapproval of franchisee advertising/marketing materials, non-approved products/services, and alternative suppliers. They may provide pricing guidelines, schedule and require attendance at annual conferences, and display the franchised Boutique's contact information on the brand's website. The franchisor administers a Brand Development Fund for system-wide marketing and maintains a System Site for updates, training, and communication. Furthermore, they conduct inspections and audits to ensure compliance and continuously research new services, products, equipment, and business methods.
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
THE NOW FRANCHISE, LLC defines its Designated Territories for franchisees, which are typically a radius around the Boutique. For locations in major metropolitan downtown or central business districts, the territory may be limited to a one-block radius around the premises or its building. The franchisor determines the size and boundaries of each territory at its discretion, which can vary based on location and demographics. Territories may be described using zip codes, streets, landmarks, or county lines, or delineated on a map.
Staffing Notes
THE NOW FRANCHISE, LLC requires that each franchised Boutique always has at least one individual who has successfully completed the initial training program managing its day-to-day operations. If a franchisee owns multiple Boutiques, each must have a properly trained Designated Manager. Additionally, franchisees must appoint a licensed Massage Therapist, who has completed the initial on-site training, as a 'Lead Therapist.' This Lead Therapist is responsible for training all other Massage Therapists on providing Approved Services according to the System's standards. The franchisee or their Designated Manager is also responsible for training all other employees on sales, advertising, premises maintenance, the Business Management System, and other relevant operational aspects.