Do you want to open a nail salon business by buying Regal Nails franchise? If YES, here is how much it cost to open Regal Nails franchise successfully. If you are looking towards opening a Regal Nails 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.
Regal Nails was founded in 1997 and they began franchising in 2005, about 15 years ago. The company has her corporate head office in Baton Rouge, Louisiana, USA. As of the 2016 Franchise Disclosure Document, there are 714 franchised Regal Nails locations across the United States, in Canada and Puerto Rico. Regal Nails has franchise locations in 46 states. The largest region is the South with 443 franchise locations.
Regal Nails provides everything needed for a nail salon franchise to run well and successfully, and monitors all phases of the build-out and set-up process to ensure that all salons follow specifications and are operated in an efficient and effective manner.
Regal Nails Salon & Spa is the industry leader in setting the standards for customer service, innovation and salon hygiene. Regal Nails knows that customer satisfaction begins with the salon itself, and each Regal salon emphasizes customer care as the number one priority.
Regal Nails has led the way in several salon innovations. It was the first major nails salon to: require hospital-grade disinfectants for all implements and spa basins; require autoclaves to sterilize equipment; require porous implements to be disposed after a single use; and outlaw the use of credo tools. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Regal Nails Franchise
- Initial Franchise Fee: $15,000
- Total Investment: $175,340 to $674,724
- Working Capital: $12,000 to $15,000
1. Initial Investment Range: $175,340 to $674,724
2. Franchise Fee: $15,000
3. Royalty Fee: 6 percent of Gross Sales
The Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
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.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Regal Nails and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Regal Nails if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Regal Nails if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Regal Nails is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company.
- Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If requirements are met, franchisees can renew for one additional term of 5 years.
- Financial Assistance: Regal Nails 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.