Amazing Lash Studio

## Executive Summary

Amazing Lash Studio is a beauty services franchise specializing in eyelash extensions, making luxury lash services accessible for everyday wear. Founded in 2010 and franchising since 2013, the brand has grown to 201 locations across the United States. The franchise offers a membership-based business model in the growing personal care sector.

**Investment Range:** $464,000 - $720,000 **Franchise Fee:** $50,000 **Royalty Fee:** 6% of gross sales **Marketing Fee:** 4% of gross sales

## The Business

Amazing Lash Studio has revolutionized the beauty industry by making luxury eyelash extensions accessible and convenient. The franchise operates on a membership model that provides recurring revenue through monthly lash maintenance appointments.

Key business elements: - Membership-based recurring revenue model - Premium eyelash extension services - Licensed lash stylists perform services - Retail products complement service revenue - Locations typically in retail strip centers

**Headquarters:** Englewood, Colorado

## The Numbers

### Initial Investment Breakdown - **Franchise Fee:** $50,000 - **Total Investment:** $464,464 - $719,754 - **Liquid Capital Required:** $100,000 - **Net Worth Required:** $500,000

### Ongoing Fees - **Royalty:** 6% of gross sales - **Marketing:** 4% of gross sales (national advertising) - **Total Ongoing Fees:** 10% of gross sales

### Financial Performance - **Average Gross Revenue:** $626,994 - **Industry Comparison:** 61% above sub-sector average of $388,913 - **Estimated Earnings:** $76,319 - $98,124 - **Payback Period:** 7.3 - 9.3 years

### Contract Terms - **Initial Term:** 10 years - **Renewal:** One additional 10-year term available

### Discounts Available 20% discount on initial franchise fee for: - Veterans and active-duty military - Members of minority races or ethnicities (Black, Hispanic, Asian, Pacific Islander, American Indian/Alaska Native) with 51%+ ownership

## System Health

**Network Size:** 201 locations across the United States (all franchise-owned)

**Business Model Strengths:** - Membership model creates recurring revenue - Growing demand for lash services - Above-average revenue performance vs. industry

**Considerations:** - All locations are franchise-owned (no corporate locations) - 10% combined royalty/marketing fees are significant

## Franchisee Experience

### Training & Support Amazing Lash Studio offers comprehensive support for franchisees including: - Initial training program - Ongoing operational support - Marketing resources and materials - System access and technology platforms

### Financing The franchisor does not offer direct or indirect financing and does not guarantee franchisee notes, leases, or other obligations.

## Risk Assessment

### Moderate Risk Factors 1. **High Combined Fees:** 10% of gross sales (6% royalty + 4% marketing) 2. **Long Payback Period:** 7-9 years to recover investment 3. **Disclosed Litigation:** FDD includes lawsuit and/or bankruptcy information 4. **Labor Intensive:** Requires licensed lash stylists who are in demand 5. **Service Quality:** Reputation depends heavily on stylist skill

### Lower Risk Factors 1. **Strong Revenue:** $627K average gross significantly exceeds industry average 2. **Recurring Model:** Membership creates predictable cash flow 3. **Growing Market:** Lash extensions continue gaining popularity 4. **Established Brand:** 201 locations demonstrate proven concept

### Industry Considerations - Competition from independent lash artists and salons - Staffing challenges with licensed professionals - Consumer discretionary spending sensitivity - Trend-dependent service category

## Competitive Position

Amazing Lash Studio competes against: - **Deka Lash** - **The Lash Lounge** - **Xtension Envy** - **Independent lash studios** - **Full-service salons offering lash services**

The brand differentiates through its dedicated focus on lash services and membership-based model.

## Litigation Disclosure

The FDD discloses lawsuits and/or bankruptcy information. Prospective franchisees should: - Review Item 3 of the FDD thoroughly - Consult with a qualified franchise attorney - Understand the nature and outcome of disclosed legal matters - Assess how litigation may impact the franchise system

## Validation Questions

1. What is the average membership retention rate? 2. How many active members does a typical studio have? 3. What is the average revenue per member per year? 4. What are the typical stylist compensation structures? 5. How challenging is it to recruit and retain qualified lash stylists? 6. What is the franchisee turnover/closure rate? 7. What are the details of disclosed litigation in Item 3? 8. How has studio performance trended post-pandemic?

## Data Gaps

- Specific details on disclosed litigation - Franchisee satisfaction scores - Unit closure rates - Membership retention statistics - Staffing turnover rates - Time to breakeven data

## Verdict

**Rating: MODERATE-HIGH RISK**

Amazing Lash Studio offers exposure to the growing eyelash extension market with an established brand and proven membership model. However, the investment carries significant considerations including high ongoing fees (10%), a long payback period (7-9 years), and disclosed litigation.

**Suitable For:** Beauty industry professionals or investors with strong management skills, comfort with service-based businesses, and ability to recruit/retain skilled technicians. Those with local market knowledge of beauty services demand are better positioned.

**Not Suitable For:** First-time franchisees without beauty industry experience, investors seeking quick returns, or those uncomfortable with the disclosed litigation or high ongoing fee structure.

**Recommendation:** Before investing, thoroughly review the disclosed litigation in Item 3, speak with multiple current franchisees about profitability and staffing challenges, and carefully model the 10% ongoing fees against projected revenue. The 7-9 year payback period requires patience and adequate capital reserves.