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The Lash Lounge Franchise ProfileHealth & Beauty Franchises > Spas |
What is the Initial Investment for The Lash Lounge Franchise?
The initial investment for a The Lash Lounge franchise ranges from $384,797 to $794,490. This includes a franchise fee of $60,000. Potential franchisees should also prepare for additional costs such as equipment, leasehold improvements, and working capital. It's essential to have access to cash between $324,797 and $659,490 to cover these expenses and ensure a smooth start.
What Are the Financial Performance Metrics for The Lash Lounge?
The Lash Lounge franchises show promising financial performance, with an average annual revenue of $955,502 per unit. The median revenue stands at $879,673, while the range of annual revenue varies significantly, from $103,956 to $1,432,841. With a breakeven period of approximately 16 months and an investment payback time of just 6 months, franchisees can expect a strong return on their investment.
What Are the Ongoing Fees Associated with The Lash Lounge Franchise?
Franchisees of The Lash Lounge are required to pay a royalty fee of 6% of their gross sales, along with a marketing fee of 2%. These ongoing fees are vital for maintaining brand standards and supporting marketing initiatives that drive customer traffic to the franchise locations. Being aware of these fees helps franchisees plan their budgets effectively and understand their overall financial obligations.
How Has The Lash Lounge Expanded Over the Years?
The Lash Lounge has shown steady growth in its franchise model, increasing from 109 franchised units in 2021 to 126 in 2023. This growth reflects the brand’s popularity and the demand for lash extension services. With a consistent number of corporate units remaining at 4, the franchise is focused on expanding its footprint through franchising, providing opportunities for aspiring entrepreneurs to join a thriving industry.
The Lash Lounge Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
The Lash Lounge Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 113 | 121 | 130 |
| Net Change YoY | 8 | 9 | |
| Franchised Units | 109 | 117 | 126 |
| Net Change YoY | 8 | 9 | |
| Corporate Units | 4 | 4 | 4 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Lash Lounge franchise offers a range of initial investment costs, with a low of $384,797 and a high of $794,490. The initial franchise fee is set at $60,000, while ongoing royalty fees are 6% of gross sales, along with a 2% marketing fee. Potential franchisees should have a cash requirement between $324,797 and $659,490, and a net worth of $300,000 to $600,000 to qualify for ownership.
Revenue Potential
Franchisees of The Lash Lounge can expect strong revenue performance, with an average annual revenue per unit of $669,137. The median annual revenue is reported at $879,673, while the range spans from a low of $103,956 to a high of $1,432,841. This highlights the brand's potential for profitability in the beauty and wellness industry.
Breakeven and Payback
The Lash Lounge has a breakeven timeframe of approximately 16 months, allowing franchisees to reach profitability relatively quickly. Additionally, the investment payback period is notably short, averaging around 6 months, which is an attractive feature for potential investors looking for a fast return on their investment.
Franchise Growth
The Lash Lounge has shown consistent growth in its franchised units, increasing from 109 units in 2021 to 126 units in 2023. This upward trend reflects the brand's expanding presence in the beauty industry and its appeal to new franchisees looking to capitalize on a growing market.
Financial Performance
The average annual revenue for The Lash Lounge units is reported at $955,502, with a healthy gross profit margin of 95.5%. Operating expenses account for about 11% of revenue, leading to an impressive EBITDA of 51.1%. These financial metrics indicate a robust business model with strong profitability potential.
Operating Expenses
Franchisees should be aware of the various operating expenses associated with running a Lash Lounge location. Key expenses include stylist labor at $372,246, rent at $67,013, and marketing at $36,599. Understanding these costs is crucial for effective financial planning and maximizing profitability in the franchise model.
Frequently Asked Questions
The initial investment for a The Lash Lounge franchise ranges from $384,797 to $794,490, which includes the franchise fee and other startup costs.