Xtension Envy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$322,750 - $583,750
Franchise Fee
$49,500
Total US Locations
1
Business Summary
Xtension Envy operates high-quality hair extension salons that offer hair extension sales, installation, and ongoing maintenance services. These services include coloring, washing, blowouts, straightening, and cuts, all performed under the "Xtension Envy" trademark.
Corporate History
Xtension Envy Franchise Group, LLC was formed in Arizona on April 9, 2021. The company uses the trade name "Xtension Envy" and its associated design. The first Xtension Envy salon was launched in November 2017 by co-founders Scott and Christine Lewandowski, who also founded Xtension Envy Franchise Group, LLC. Xtension Envy Franchise Group, LLC began offering franchises in 2021. The parent company, XE Holdings, LLC, operates the company-owned Xtension Envy unit.
Financial Overview
Investment Range
$322,750 - $583,750
Franchise Fee (Low)
$49,500
Franchise Fee (High)
$124,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$148,500
Equipment Costs (High)
$331,500
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Xtension Envy Franchise Group, LLC's financial statements show a net loss of $23,008 for 2024 and a members' deficit of $21,641 as of December 31, 2024. The company maintains very low cash reserves, with only $1,166 in cash and cash equivalents at the end of 2024. A significant portion of its liabilities consists of $22,807 owed to its parent company, XE Holdings, LLC, which has been paying expenses on behalf of Xtension Envy Franchise Group, LLC. This indicates that Xtension Envy Franchise Group, LLC is not currently self-sustaining and relies on its parent company for financial support.
Financing Details
Xtension Envy does not offer any direct or indirect financing options. Franchisees are responsible for arranging their own funding, and the franchisor does not guarantee any notes, leases, or other obligations on their behalf.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
1,600
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Xtension Envy's Vice President of Business Development, Peter Taunton, has been involved in three recent lawsuits filed in December 2023. These cases were initiated by former Nautical Bowls franchisees, a company where Peter Taunton previously served as CEO. The lawsuits allege violations of franchise laws, deceptive trade practices, common law fraud, and negligent misrepresentation in connection with the sale of Nautical Bowls franchises. Plaintiffs are seeking compensatory and exemplary damages, along with attorneys' fees. All three cases are currently in the pre-trial stage and involve Peter Taunton in his capacity as former CEO of Nautical Bowls. Peter Taunton became Co-Owner and VP of Business Development for Xtension Envy Franchise Group, LLC in May 2024.
Bankruptcy History
Xtension Envy has no bankruptcy history to report for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Xtension Envy franchisees must give written notice to the franchisor at least six months before their current agreement ends. They need to be in full compliance with the current agreement, not have committed three or more defaults, and complete any required additional training. Franchisees must also have the right to occupy their current business premises or get approval to relocate, and repair or upgrade their salon's equipment and assets to meet the franchisor's then-current standards. Finally, they must sign a general release, execute a new franchise agreement, and pay a successor agreement fee.
Training & Support Program
Franchisor Assistance
Xtension Envy provides pre-opening assistance with site selection guidelines and approval, as well as specifications for salon layout, design, materials, and signage. The franchisor approves architects and contractors and may conduct construction inspections. Franchisees receive the Xtension Envy Brand Standards Manual and other operations manuals. Initial training is provided at the franchisor's headquarters or an affiliate-owned outlet for up to three individuals. The franchisor also approves the grand opening marketing plan. After opening, Xtension Envy offers mandatory or optional additional training programs, including annual business meetings or conventions. Remedial on-premises training and individualized assistance via phone, video conferencing, or email are available upon request. The franchisor provides advertising and promotional material samples, conducts business inspections, and updates lists of approved suppliers. Xtension Envy also administers the system-wide Brand Fund and approves or disapproves all local advertising proposed by franchisees.
Initial Training Hours
69
Training Location
Corporate headquarters and/or an affiliate-owned outlet in Scottsdale, AZ
Ongoing Support
After opening, Xtension Envy provides ongoing support through mandatory or optional additional training programs and annual system-wide business meetings or conventions. Upon request or as deemed appropriate by the franchisor, remedial on-premises training and individualized assistance via telephone, video conferencing, or email are available. The franchisor provides samples of advertising and promotional materials, conducts inspections of the franchised business, and updates lists of approved suppliers. Xtension Envy administers the Brand Fund and approves or disapproves all local advertising proposed by franchisees.
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
Exclusive
Staffing Notes
Xtension Envy franchisees must designate and retain a full-time general manager who meets the franchisor's qualifications and successfully completes the Initial Training Program. This manager must dedicate their full time to the business and avoid any competing business relationships. Additionally, all managers and personnel who will access the franchisor's proprietary and confidential information and training materials are required to sign a Confidentiality and Non-Compete Agreement.