Risk Score
Pending analysis
Investment Range
$258,250 - $448,800
Franchise Fee
$49,500
Total US Locations
14
Business Summary
The Tox Franchising Group, LLC operates a business that provides patients with various lymphatic-based body sculpting wellness services and related products. The Tox uses its distinctive operating procedures, standards, and trademarks to offer these services from a single location.
Corporate History
The Tox Franchising Group, LLC was originally formed as a limited liability company in California in January 2021, later converting to a Florida limited liability company in July 2023. The Tox began offering franchises in February 2021. Through its affiliates, The Tox has operated outlets similar to the franchised business since 2019.
Financial Overview
Investment Range
$258,250 - $448,800
Franchise Fee (Low)
$49,500
Franchise Fee (High)
$49,500
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$100,000
Equipment Costs (High)
$190,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Tox Franchising Group, LLC's financial condition, as noted in the FDD's special risks section, raises questions about its ability to provide services and support to franchisees. This indicates potential financial challenges that prospective franchisees should consider.
Financing Details
The Tox Franchising Group, LLC does not offer any direct or indirect financing to franchisees. The company also does not guarantee any notes, leases, or other obligations on a franchisee's behalf.
Performance Metrics
Total US Locations
14
Franchised Units
6
Corporate Units
8
Avg Square Footage
1,500
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Tox Franchising Group, LLC has no litigation history to report. Item 3 of the Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
The Tox Franchising Group, LLC has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, The Tox franchisees must meet several conditions. They need to be in full compliance with their current agreement, have no more than three instances of default during the current term, and provide written notice to The Tox at least six months before the current term ends. Franchisees must also sign a new franchise agreement, pay a renewal fee equal to 50% of the then-current initial franchise fee, maintain their location to current brand standards, sign a general release, and complete any required training.
Training & Support Program
Franchisor Assistance
The Tox Franchising Group, LLC provides various forms of assistance to its franchisees. Before opening, The Tox helps with site selection guidelines and approves the chosen location, offers access to its operations manual and other training aids, and provides a list of required equipment, signage, supplies, and products. The Tox also provides initial training for up to six individuals, covering up to four technicians and two business operators, and offers standards for employee qualifications and training. After opening, The Tox offers optional and mandatory additional training programs, including an annual conference or training summit. Upon request or as deemed appropriate, The Tox provides supplemental corrective on-site training. Individualized assistance is available within reasonable limits via telephone, video conferencing, electronic mail, or postal service. The Tox also provides samples or digital artwork for advertising and promotional materials, written specifications for required equipment and supplier lists, and may recommend minimum and maximum prices for products and services. All franchisee advertising and promotional materials must be approved by The Tox.
Initial Training Hours
112
Training Location
An affiliate-owned or franchised location in the U.S., or at the franchisee's location, or another location designated by The Tox.
Ongoing Support
After opening, The Tox Franchising Group, LLC provides several ongoing support services. The Tox may offer mandatory or optional additional training programs, including an annual conference or training summit that franchisees, their General Managers, and technicians may be required to attend. Upon request or as deemed appropriate by The Tox, supplemental corrective on-site training and assistance can be provided at the franchisee's premises. Individualized assistance is also available within reasonable limits via telephone, video conferencing, electronic mail, or postal service, subject to personnel availability. Additionally, The Tox may provide samples or digital artwork for advertising and promotional materials, and updated lists of approved suppliers for equipment, products, and services.
Franchise Requirements
Ideal Candidate Profile
The Tox is seeking qualified individuals of good character who are actively involved in the management of their The Tox outlet. Franchisees should possess sufficient business experience, aptitude, and financial resources to successfully operate the business and be committed to making all commercially reasonable efforts to achieve optimum revenue. If the franchisee appoints a General Manager, that individual must devote full-time efforts to the role and have no business relationship with competitors.
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
non-exclusive
Staff Count
6
Territory Size Requirements
The Tox Franchising Group, LLC defines its franchise territories by a group of contiguous zip codes, a marked map, radial distance from the Franchised Business, or another method deemed appropriate by The Tox. The territory size is determined on an individual basis, considering demographics, minimum numbers of households, household income, and market potential. The minimum territory granted will be an area with a population of 100,000 people or a 3-mile radius from the Franchised Business location, whichever is less.
Staffing Notes
The Tox Franchising Group, LLC requires franchisees to be actively involved in the management of their The Tox outlet. While franchisees can appoint a General Manager for day-to-day operations, they must remain active in overseeing the business. The General Manager, who can be the franchisee or another approved individual, must complete the Initial Technique Training Program, devote full time and best efforts to management, and have no conflicting business interests. The initial training is for up to six individuals, including up to four technicians and two business operators (owner or general manager). All personnel who access proprietary and confidential information must sign a Confidentiality/Non-Competition Agreement. If a General Manager cannot continue, a replacement must be designated within 30 days, meeting the same qualifications and training requirements.