The Lash Lounge

What were the specific reasons for the 4 litigation cases filed against the franchisor over the past 3 years, and what were the outcomes or current status?

The 3-year turnover rate of 17.1% exceeds typical benchmarks. Can the franchisor provide a breakdown of which unit closures were due to economic performance, local market conditions, franchisee choice, or franchisor-initiated terminations?

Why did the system experience 8–9 unit closures in both 2020 and 2021? Were these COVID-related, or indicative of underlying business model challenges?

The transfer fee of $5,000 is below market range. Are there any restrictions on who can be approved as a new franchisee, and what is the approval timeline and criteria?

How does the franchisor support franchisees in the first year of operation, given the support training score of 100/100? Can you provide details on training duration, ongoing coaching, and marketing support?

The contract allows for a total potential term of 30 years (10 initial + 2×10 renewals). What renewal rate does the franchisor typically see, and under what conditions might renewal be denied?

The franchise agreement requires mandatory binding arbitration in Tarrant County, Texas, with individual dispute resolution and a class action waiver. How have past disputes with franchisees been resolved, and what were typical costs?

Personal guarantees are required from all owners and spouses regardless of ownership interest. Can you explain the scenarios under which this guarantee would be enforced against personal assets?

The franchisor can terminate for curable defaults with 10–30 day cure periods. What are the most common defaults that have triggered disputes with franchisees, and can you provide examples?

Financial obligations include the greater of actual royalty fees or a minimum weekly royalty, plus late payment interest at 18% per annum. What is the minimum weekly royalty amount, and how frequently have late payment penalties been assessed?

The territory is protected but not exclusive. Can the franchisor open additional locations or approve new franchisees within your defined service area, and what recourse exists if this occurs?

Given the 2-year/20-mile non-compete clause, can you clarify whether this applies to all eyelash extension and permanent makeup businesses, or only those using the Lash Lounge brand and methods?

What percentage of franchisees have achieved or exceeded the median gross sales of $609,587, and over what timeframe do new units typically reach profitability?

The average gross sales exceed median gross sales. Can the franchisor provide percentile breakdowns (e.g., top 25%, bottom 25%) to understand the distribution of unit performance?

How many of the 137 current units are owned by the franchisor versus franchisees, and do franchisor-owned units perform differently than franchisee-owned units?

The operational control clause requires purchases from the franchisor or approved suppliers for 8 categories. Can you provide the markup percentages or pricing comparisons versus independent suppliers for each category?

Have any franchisees challenged the sourcing requirements or requested to use alternative suppliers? If so, what were the outcomes?

Franchisees must contribute to local/regional advertising budgets beyond the 2% ad fund. What is the typical additional local marketing investment required, and how is it spent?

What is the current system's average unit volume (AUV), and how does it compare to the median and average gross sales figures provided?