The Ten Spot Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$335,000 - $524,000
Franchise Fee
$50,000
Total US Locations
4
Business Summary
THE TEN SPOT offers franchises for beauty bars and grooming boutiques specializing in manicures, pedicures, facial treatments, body waxing, and other approved grooming services. These locations also sell designated beauty and grooming-related products. THE TEN SPOT Beauty Bars operate under the brand's name and proprietary business system.
Corporate History
THE TEN SPOT concept originated in May 2006 with Kristen Gale, who has been actively involved in developing the system since then. The franchisor entity, The Ten Spot Ltd., was incorporated in Delaware on June 1, 2018, and began offering franchises for Beauty Bars in the United States on September 7, 2018. An affiliate, The Ten Spot Franchising Inc., started offering franchises in Canada in October 2011. As of April 30, 2024, there were three franchised Beauty Bars operating in the United States.
Financial Overview
Investment Range
$335,000 - $524,000
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$201,000
Equipment Costs (High)
$312,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section notes that THE TEN SPOT's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. As of April 30, 2024, THE TEN SPOT's total stockholder's equity was $14,825, and it had a retained deficit of $(86,175). The independent auditor's report does not express a qualified opinion or explicitly state a going concern issue, but it mentions management's responsibility to evaluate if conditions raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
THE TEN SPOT does not offer any direct or indirect financing to franchisees, nor does it guarantee a franchisee's obligations. Franchisees are responsible for securing their own funding from third-party lenders.
Performance Metrics
Total US Locations
4
Franchised Units
3
Corporate Units
1
Avg Square Footage
1,200
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
THE TEN SPOT has no litigation history to report. Item 3 of the FDD states that no litigation information is required to be disclosed.
Bankruptcy History
THE TEN SPOT has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, THE TEN SPOT franchisees must provide timely written notice, complete all required maintenance and remodeling of their Beauty Bar to meet current brand standards, ensure they are not in default of their agreements and have complied with all operating procedures. Franchisees must also satisfy all outstanding financial obligations to THE TEN SPOT or its affiliates, sign the then-current franchise agreement (which may have different terms), pay a renewal fee equal to 50% of the initial franchise fee, sign a general release (subject to state law), and retain possession of the approved premises.
Training & Support Program
Franchisor Assistance
THE TEN SPOT provides various forms of assistance both before and after a Beauty Bar opens. Pre-opening support includes site selection guidelines and assistance, defining the territory, providing access to the confidential operations manuals, offering lists of approved products and suppliers, and providing specifications for fixtures, equipment, and signage. THE TEN SPOT also reviews and approves the proposed layout and design of the premises and provides an initial training program. Post-opening, THE TEN SPOT may offer additional training programs and refresher courses, provide ongoing consultation and advice, approve advertising and marketing materials, and approve or disapprove requests for non-approved products or suppliers. THE TEN SPOT may also schedule franchise conferences, display the Beauty Bar's contact information on its website, administer the Brand Fund, maintain an online portal for franchisees, conduct inspections and audits, and research new services or products for the system.
Initial Training Hours
141
Training Location
Online/virtual, franchisor headquarters in Toronto, ON, Canada, or franchisee's location
Ongoing Support
After opening, THE TEN SPOT offers ongoing support through various channels. Franchisees may be required to attend additional training programs or refresher courses, and they can receive continuing consultation and advice on managing and operating their Beauty Bar. THE TEN SPOT may also schedule and hold annual franchise conferences, maintain a website or online portal for franchisees, and conduct inspections and audits of the premises. THE TEN SPOT also supplements and revises its operations manuals and may research and develop new products, services, and equipment for the system.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
THE TEN SPOT typically defines a Designated Territory as a 250-meter radius around the approved premises. However, if the Beauty Bar is in a major metropolitan downtown area or a similarly densely populated location, the territory may be limited to a radius of two blocks to one mile around the premises, depending on what THE TEN SPOT determines is appropriate.
Staffing Notes
THE TEN SPOT franchisees are solely responsible for all employment decisions, including hiring, training, firing, and supervising employees. They must maintain a competent, conscientious, and trained staff, including enough estheticians, to operate the Beauty Bar according to brand standards. Employees are expected to provide prompt, courteous, and knowledgeable service, meeting THE TEN SPOT's minimum standards. THE TEN SPOT has the right to approve or disapprove any esthetician or manager if they fail to complete required training or do not provide services in line with the system's standards. Before opening a fourth Beauty Bar, franchisees must designate a 'Brand Trainer' who is approved by THE TEN SPOT and responsible for training the lead estheticians for their locations, and this Brand Trainer must complete a specific training program and undergo annual recertification.