The Lash Lounge Franchise Review (2024)
The Lash Lounge was founded because of the need for a service that gives the everyday woman a glamorous appearance and saves time. Their focus is to provide an amazing customer service by building personal connections with each person, treating every customer like a special guest and creating a relaxing escape from daily life.
The Lash Lounge Franchise Background
They specialize in semi-permanent eyelash extensions. Their mission is to provide each client with a low-maintenance beauty routine, a simplified lifestyle and a new definition of confidence.
Beyond the lashes, the beauty salons also have a makeup counter and a clothing and accessories boutique, making it a one stop shop.
Management Team
Anna Phillips, the Founder and CEO began her career as a massage therapist, esthetician and permanent makeup artist. She worked as a massage therapist at Google, a highly coveted position, where she soaked in the entrepreneurial and creative atmosphere. While living on the west coast, Anna came across the application of eyelash extensions – a service only known to starlets and industry insiders at the time.
After a move to Texas, Anna became one of the first certified eyelash extension trainers for Xtreme Lashes and traveled the U.S. training others on the service. She also rented a small room taking clients that eventually grew into a wide-spread demand.
Anna opened the first Lash Lounge salon in 2006 and evolved the concept into a franchise in 2010.
Franchise Health And Beauty Industry Analysis
Franchise Strengths
- Operationally simple with all the stylists already with their certifications
- Recurrent revenue streams (VIP memberships as well)
- Ability to have a manager run the day-to-day of the business
- One of the firsts to establish in the market
Franchise Weaknesses
- Reliant on skilled stylists to deliver the service that the customer expects
- Operates in a competitive environment with low barriers of entry
The Lash Lounge Franchise Opportunities
- Ability to invest in a growing brand in a fast growing segment of the beauty industry
- False lashes market is estimated to bring in US$ 1,486.8 million by the end of 2022 (Fact.MR)
- Since 2012, false eyelash sales have grown by 75%. It is a $170 million market. (The Washington Post)
Threats In The Lash Lounge Franchise Market
- Changing consumer preferences and styles
- Other nearby competition and growing national chains
- Many consumers see as “non-vital” good, and is thus is more prone to economic recessions
The Lash Lounge Franchise Cost (2019 FDD)
How Much is a The Lash Lounge Franchise?
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
|---|---|---|---|---|
| Low | High | |||
| Initial Franchise Fee | $49,500 | $49,500 | When Franchise Agreement is signed |
Us |
| Lease Payment (first 3 months) |
$4,650 | $24,220 | As incurred | Landlord |
| Security Deposits | $3,078 | $9,892 | As incurred | Landlord |
| Leasehold Improvements | $73,270 | $215,946 | As required | Contractors and third party suppliers |
| Furniture, Fixtures, Décor, and Equipment |
$49,328 | $78,705 | As required | Us and Approved Suppliers |
| Salon Layout, Architect, Engineer, Drawings, and Permits |
$4,287 | $19,585 | As required | Approved suppliers, your architect and engineer |
| Construction Management | $0 | $10,000 | As incurred | Approved suppliers or third party suppliers |
| Initial Supplies | $5,478 | $6,987 | As incurred | Approved suppliers |
| Outdoor Signage | $3,365 | $13,497 | As incurred | Approved suppliers |
| Point of Sale (“POS”) Register, Hardware, Software |
$3,493 | $10,213 | As incurred | Approved suppliers |
| Initial Cosmetic Inventory Package |
$1,800 | $2,500 | As incurred | Designated Suppliers |
| Pre-opening training expenses (per person) |
$5,500 | $8,000 | Before opening | Us and third party suppliers of transportation, food and lodging for you and your employees |
| Telephone and Utility Deposits and Expenses |
$250 | $500 | As incurred | Third party suppliers |
| Grand Opening Event | $1,000 | $1,500 | As incurred | Approved suppliers |
| Business Licenses, Permits, etc. (first year) |
$200 | $1,300 | As agencies require |
Applicable agencies |
| Insurance Deposits and Premiums (first three months) |
$1,500 | $2,000 | Before opening | Insurance carriers |
| Additional Funds – (first three months) |
$35,000 | $45,000 | As incurred | Various |
| Grand Total | $242,699 | $502,345 | ||
| Development Fee | $79,500 (2-Pack) | $99,500 (3-Pack) | execution of Development Agreement |
|
| Initial Investment to Open Initial/Single Salon |
$193,199 | $452,845 | Totals from Chart A of this Item 7 less the Initial Franchise Fee. |
Totals from Chart A of this Item 7 less the Initial Franchise Fee. |
| Total | $272,699 – $532,435 (2 Salons) |
$292,699 – $552,345(3 Salons) |
||
| Royalty | Ad-Fund |
| 6% | 2% |
- According to Item 7 in The Lash Lounge 2021 FDD
Historical The Lash Lounge Franchise
How Much Do The Lash Lounge Franchise Owners Make?
2017 GROSS REVENUE FOR FRANCHISEES IN OPERATION FOR TWO OR MORE CALENDAR YEARS AS OF DECEMBER 31, 2017
FDD Disclaimer: “The chart below includes the total Gross Revenues for all System Salons that were in operation for two full calendar years or more. Please carefully read all of the information in this Item 19, as well as all of the notes following the charts in conjunction with your review of this historical data.”
| Location Type | Gross Revenue 2017 | Service Revenue 2017 | Product Revenue 2017 |
|---|---|---|---|
| Affiliate No. 1 | $874,895 | $838,014 | $36,881 |
| Affiliate No. 2 | $805,252 | $778,518 | $26,734 |
| Affiliate No. 3 | $525,523 | $504,858 | $20,665 |
| Affiliate No. 1 | $382,217 | $367,624 | $14,594 |
| Affiliate No. 2 | $407,054 | $390,181 | $16,873 |
| Affiliate No. 3 | $308,117 | $292,756 | $15,362 |
| Affiliate No. 4 | $280,981 | $269,077 | $11,904 |
| Affiliate No. 5 | $622,518 | $600,995 | $21,523 |
| Affiliate No. 6 | $306,074 | $297,831 | $8,243 |
| Affiliate No. 7 | $633,037 | $611,704 | $21,334 |
“The original prototype for a THE LASH LOUNGE salon included additional floor space for retail boutique sales. Salons which opened prior to December 31, 2016, and are therefore included in the above chart, operate pursuant to this original prototype model. Salons of the type described in this disclosure document, however, will neither include the additional floor space required for, nor revenues related to, boutique sales. As a result, the above chart breaks out total revenue into two relevant categories: service-derived revenue and product-related revenue.”
| Affiliate No. 1 | Affiliate No. 2 | Affiliate No. 3 | |
|---|---|---|---|
| Salon Sq. Footage | 1760 | 1563 | 1000 |
| Number of Stations | 8 | 6 | 5 |
| Gross Revenue | |||
| Services | $838,014 | $778,518 | $504,858 |
| Retail | $36,881 | $26,734 | $20,665 |
| Total Gross Revenue | $874,895 | $805,252 | $525,523 |
- According to Item 19 of The Lash Lounge 2018 FDD
2017 REVENUES, EXPENSES, AND INCOME FOR AFFILIATE-OWNED SALONS WHICH HAVE BEEN OPERATING FOR AT LEAST TWO CALENDAR YEARS
FDD Disclaimer: “The following chart includes certain revenue and expense information with respect to three affiliate- owned Salons which were operating for the full 2017 calendar year. The first and second affiliate locations include a larger premises and footprint—which includes space for boutique sales— than both the third affiliate location and those salons developed pursuant to this disclosure document. More recent salons, that is, those developed during the final quarter of 2015 or later, do not include a separate boutique retail space, and is consistent with the footprint of the third affiliate location depicted below.”
| Affiliate No. 1 | Affiliate No. 2 | Affiliate No. 3 | |
|---|---|---|---|
| Variable Labor | $343,401 | $291,521 | $191,823 |
| Rackbar Supplies | $25,198 | $28,779 | $16,146 |
| Retail COGS | $14,336 | $9,815 | $6,908 |
| Gross Profit | $492,960 | $475,137 | $310,646 |
| Gross Margin % | 56,23% | 59,00% | 59,11% |
| Operating Expense | |||
| 6% Royalty Fee | $52,494 | $48,315 | $31,531 |
| 2% Marketing Fee | $17,095 | $16,105 | $10,322 |
| Local Salon Marketing | $12,843 | $12,843 | $13,843 |
| Fixed Labor | $47,866 | $44,837 | $44,200 |
| Rent | $89,918 | $63,048 | $48,224 |
| Bank & CC Fees | $17,490 | $16,053 | $10,754 |
| Other Expenses | $62,809 | $86,664 | $43,313 |
| Total Operating Expenses | $300,515 | $287,865 | $201,187 |
| Operating Profit | $191,445 | $187,272 | $109,459 |
| Operating Margin | 22% | 23% | 21% |
