Do you want to open a hair removal business by buying BodyBrite franchise? If YES, here is how much it cost to open BodyBrite franchise successfully. If you are looking towards opening a BodyBrite Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.
BodyBrite was founded in 2011 and they began franchising in 2012, about 8 years ago. The CEO of the company is Chris Hardy and the company has her corporate head office at 2839 Lyndale Ave. S. Minneapolis, MN 55408, USA. Currently they have about 205 franchise units in operation in the United States. Based on 2017 FDD data, BodyBrite has franchise locations in 8 states. The largest region is the South with 4 franchise locations.
BodyBrite franchise system offers hair removal, body rejuvenation, and other beauty services centers. Simply HairFree Franchising II, LLC d/b/a BodyBrite is the franchisor. Its parent company is Simply HairFree Holdings, LLC.
The franchisor franchises the right to operate hair removal, body rejuvenation, and other beauty services centers utilizing franchisor’s proprietary operating system and marks, including the “BodyBrite” mark. The precise services offered at a particular center will depend on state regulations.
Please note that BodyBrite has a franchise fee of up to $29,000, with a total initial investment range of $114,383 – $177,500. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Bodybrite Franchise?
1. Initial Investment Range: $114,383 – $177,500
Please note that the franchisor relied on its experience from opening a location in the past and its experience in the beauty care and spa saloon industry and related business.
2. Franchise Fee: $29,000
Please note they are looking for hard-working individuals that want to excel while owning and operating their own business.
3. Royalty Fee: 6 percent of Gross Sales plus the Maintenance Fee
(currently $200 per month) and subject to the Minimum Royalty. Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Training Expenses (For 2-3 people): $1,500 to $3,000
- Leases and Security Deposits: $3,000 to $9,000
- Leasehold Improvements: $5,000 to $40,000
- Initial Inventory: $1,500 to $5,000
- Grand Opening Advertising: $10,000 to $10,000
- Insurance: $1,333 to $2,000
- Equipment Package: $49,500 to $82,000
- Shipping Costs: $1,800 to $2,100
- Miscellaneous Operating Costs: $500 to $3,000
- Business Licenses, Permits and Other Deposits: $300 to $1,500
- Professional Fees: $500 to $3,000
- Signage: $3,000 to $5,000
- Initial Hardware and Software Costs: $2,000 to $4,000
- Additional Funds – 3 months: $15,000 to $30,000
- Pulse: 1.5¢/Pulse.
- National Marketing Fee: 2 percent of gross sales revenue with a minimum of $400/month.
- Local Marketing Requirement: Franchisees must spend a minimum of $1,000 per month on local advertising and promotion.
- Technology Fee: Currently, $150 per month as of the date of this Disclosure Document; provided the franchisor may increase this fee to cover the then-current cost for the license of the business operations software and other technology.
- Transfer Fee: Up to 50 percent of the then-current Initial Franchise Fee or Area Development Fee, as applicable.
- Renewal Fee: $2,500
- Collection Costs, Attorneys’ Fees, Interest: Fees and costs incurred plus interest at 18 percent or highest lawful interest rate for commercial transactions
- Insurance: Cost of insurance (estimated at $4,000 – $6,000 annually). If franchisees fail to maintain their insurance as required, the franchisor has the right to procure insurance on their behalf and charge an 18 percent administrative fee in addition to the cost of the insurance.
- Audit Costs and Charges for Inspections and “Mystery Shopper” Evaluations: Cost of audit, inspection and/or evaluation
- Additional Training and Ongoing Assistance: Currently $750 per day plus expenses for additional assistance or training.
- Indemnification: Amount of Claim or Judgment. and the Due Date is As incurred.
Please note that you must reimburse BodyBrite if it is held liable for claims arising out of your franchise operations.
- Supplier Approval and Testing Costs: $250 Application Fee plus Costs of Testing.
- Post-Termination and Post-Expiration Expenses: Costs and Expenses Associated with the franchisee’s Ceasing of and De-identification With the Business.
- Insufficient Funds: $25/ Occurrence plus Interest at 18 percent or Highest Lawful Interest Rate for Commercial Transactions.
- Late Report Fee: $100
- Late Payment Fee: $10/ Day plus Interest at 18 percent or Highest Lawful Interest Rate for Commercial Transactions.
- Replacement or Upgraded Machines and Other Proprietary Products: Then-current cost of the machine or product
- Liquidated Damages: If the franchisor terminates the Franchise Agreement for cause, franchisees must pay to the franchisor within 15 days after the effective date of termination liquidated damages equal to the average weekly amount of Royalty Fees, Pulse Fees, and other amounts they paid to the franchisor during the 52 weeks prior to the date of termination, multiplied by the number of weeks remaining in the Franchise Agreement had it not been terminated.
- Veteran Incentives: This is open for negotiation with the company.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the right to renew the franchise agreement for two successive, additional five-year periods provided certain conditions are me.
- Financial Assistance: BodyBrite has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Initial Investment: $114,383 – $177,500
- Net-worth Requirement: $150,000
- Liquid Cash Requirement: $50,000
- Ongoing Initial Franchise Fee: $29,000 – $29,000
- Ongoing Royalty Fee: 6 percent
- Ad Royalty Fee: $300/mo.
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