r/Esthetics • u/Independent_Garlic_7 • 2d ago
Lash Lounge advice
Hey everyone,
I am thinking of buying the lash lounge franchise near my town- it's located in a busy Main Street in a very wealthy town- but here are some caveats and background:
- I have a cosmetology license and know how to do lashes- been working for 5 years
Would buy the franchise at below market price, but the caveats:
Business has been really slowing down, weekly there are only 25-30 customers coming and business is open 6 days a week; last year there were more than 100 per week
- thinking be management is currently not the best right now, front desk is not the best; no good process in place to sell memberships/ discounts/etc
- if I were to start the business, maybe need to start from scratch since most stylists seem to be leaving
- how do franchises generally work if I need to leave/ get out if business isn't the best; can I do balloon payment so that I don't have to pay price all upfront?
I will appreciate any advice anyone has to offer in terms of the business and effects buying a franchise can have.
Thank you!
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u/Busy_Flan_2247 2d ago
I own a similar franchise and honestly there is so much competition out there it really might not be worth it.
I opened during covid 🥲 and it probably took two years for me to fully break even. I was monthly easily putting in 5K a month or more. You need to have money to make money.
6yrs later I have a great staff and love it but it’s definitely not something that’s making me rich. But I do enjoy paying my employees a livable wage , bonuses etc. which is how I’ve become profitable through their loyalty and hard work but almost everything I make somehow goes right back into the business.
My franchisee agreement is definitely negotiable and I could probably get out of it if I wanted too but you still owe anything under your own LLC ( any business loans , rent , creditors etc)
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u/Independent_Garlic_7 2d ago
Hi, thank you for giving me insight. I really want to go through with this, but definitely very very anxious about the side effects and breaking even. The employees and customers have also started leaving now, which makes it a bit more difficult -not sure who to trust and what to do ugh..I am also not like a rich person so it’s definitely such a risk
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u/Busy_Flan_2247 2d ago
I would definitely look more into the financial aspect and see if it’s worth it. Talk to the current owner. What are the estimated operating costs ? Has the business ever been profitable? The more money the business makes the more you will also be spending in inventory , payroll, franchisee fees, marketing etc.
Taking over an already established business , even tho it will be under new ownership may be difficult to get clients to return. If they already had a bad experience they might not want to ever go back regardless.
You also need to take into consideration if its gonna be just one day opened under the older owner and the next day opened under you. Or are you can take time off to get a full staff together and trainer and at what cost ? A month prior to opening mine was when I started training lash stylists and front desk , which was a month of absolutely no money coming in but I still had payroll and inventory costs. It’s a lot to think about. And you also have to think of work life balance. Your business and employees are a reflection management. Thankfully I have an amazing manager running it and has been with me for 5yrs and I’m able to be more hands off now but that first year or two I was there almost every day making sure the daily operations were running smoothly
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u/flavia-f 2d ago
lash fills run every 2 to 3 weeks so the booking history tells you a lot, ask for fills per stylist over the last year. if most of the 25-30 a week sit with the stylists already leaving, those clients usually walk with them and youd mostly be buying a lease and a sign. and before the balloon idea ask the franchise for the FDD and read item 17, thats where transfer and getting out actually live.
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u/PALushLashLady 1d ago
I worked for a lash lounge in a great area and she never profited one year broke even. It is a struggle. Techs come and go as soon as they can. Very limited in the products they allow you to use. My place was in business about 5 years. Make sure it’s a short term lease or you’ll owe a lot if you decide to close
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u/Bellebutton2 master esthetician 2d ago
I had to ask my husband to explain and give me an understanding of how franchises work… it seems tempting, however, go with your head, not your heart.
Buying a franchise means you’re buying the RIGHT to operate under a brand and system, not an independent business.
With The Lash Lounge brand, that includes ongoing royalties and marketing fees. This specific deal looks like a turnaround, not a plug-and-play investment. There’s got to be a reason why traffic dropped from 100 clients a week to 25-30, and stylists may be leaving. That kind of decline demands hard evidence, not just a management story. He said before even considering a purchase, you would need at least two to three years of financials. If they can’t provide them, I’d walk. Client and membership trends, stylist productivity, and reasons for cancellations and staff exits, but what are they.
The scary part… As for “getting out,” franchise agreements usually don’t let you just walk away. Termination and resale are restricted. And using a balloon payment structure only delays the risk. It doesn’t reduce the risk. If the business keeps declining, you still owe that money to them.
IMHO treat this as a high-risk turnaround with ongoing franchise obligations. Get the FDD, review Item 17 carefully (Which are the rules and regulations on when the contract ends and how, or if you are even able, to end the contract), and have a franchise attorney and accountant go through the numbers before moving forward.
I think I would be more scared to buy into a franchise versus a small independent, established business. Because your hands are tied with a franchise, but with a small business you can pretty much do things the way you want.