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Frenchies
How much does Frenchies cost?
Initial Investment Range
$452,126 to $577,033
Franchise Fee
$58,000 to $128,000
You will operate a business offering hand and foot care services for men and women and the sale of related products and services.
Enjoy our partial free risk analysis below
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Frenchies April 2, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor explicitly flags its financial condition as a special risk. The parent holding company's audited financials in Exhibit F show significant consolidated net losses for 2023 and 2024, an accumulated deficit exceeding $10 million, and a balance sheet heavily weighted with goodwill from acquisitions. This financial weakness, despite a guarantee from the parent, could impact the franchisor's ability to provide support, grow the brand, and fulfill its obligations, posing a significant risk to your investment.
Potential Mitigations
- Your accountant must conduct a thorough review of the consolidated financial statements for the parent, BCC Services Holding Company, paying close attention to the net losses and accumulated deficit.
- A franchise attorney should evaluate the strength and enforceability of the parent company's Guarantee of Performance.
- Discuss the franchisor's financial health and its specific plans for achieving profitability with your financial advisor.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals a notable level of franchisee turnover for a system of this size. Over the last three years, there have been 3 terminations and 8 transfers among a base of approximately 23 franchised outlets. This combined exit rate suggests potential issues with franchisee profitability, satisfaction, or the viability of the business model. You should investigate the reasons behind these departures before investing.
Potential Mitigations
- With your business advisor, it is critical to contact a significant number of the former franchisees listed in Item 20 to understand their reasons for leaving the system.
- Your accountant should analyze the turnover rates in Item 20 over the past three years to identify any negative trends.
- Discuss the specific circumstances of the terminations and transfers with the franchisor directly, with questions prepared by your attorney.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD Package. Rapid system growth can strain a franchisor's ability to provide adequate support to new and existing franchisees. If a franchisor's support infrastructure does not keep pace with its unit growth, new franchisees may experience delays in opening, inadequate training, and insufficient ongoing assistance, which can negatively impact their success.
Potential Mitigations
- Assessing the franchisor's historical growth rate in Item 20 with your business advisor can reveal if expansion is outpacing support capabilities.
- During due diligence calls, you should ask existing franchisees about the quality and timeliness of the support they receive from the franchisor.
- A review of the franchisor's financial statements with your accountant can help determine if they have allocated sufficient resources for support staff and infrastructure.
New/Unproven Franchise System
Medium Risk
Explanation
The Frenchies system began franchising in 2015 and has a relatively small number of outlets (23 franchised units as of year-end 2024). While not a brand-new startup, it is still a young system. Investing in a smaller, less established franchise system carries risks such as limited brand recognition, unproven long-term market viability, and support systems that may not be as developed as those of larger, more mature brands.
Potential Mitigations
- A business advisor can help you assess the risks and potential rewards of investing in a younger franchise system with less brand recognition.
- It is crucial to speak with a broad range of existing franchisees about their experience with the system's maturity and level of support.
- Your attorney should help you evaluate if the franchise agreement terms reflect the higher risk associated with a less established brand.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD Package. A fad business is one tied to a fleeting trend, which can lead to a sharp decline in customer demand after the initial hype fades. Investing in a fad carries the risk that your business could become unprofitable or fail once consumer interest moves on, even though your long-term contractual obligations to the franchisor would remain.
Potential Mitigations
- Conducting independent market research with a business advisor is essential to determine if the products or services have long-term, sustainable demand.
- You should evaluate the franchisor’s plans for product innovation and system evolution to assess its adaptability to changing market tastes.
- A discussion with your financial advisor can help you analyze the business model’s resilience beyond current trends.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD Package. A franchisor's management team lacking significant experience in franchising or in the specific industry can be a major risk. Inexperienced leadership may result in underdeveloped operating systems, ineffective marketing, and inadequate franchisee support, potentially jeopardizing the success of the entire franchise network.
Potential Mitigations
- A thorough review of the executive biographies in Item 2 of the FDD with your business advisor is important to assess their relevant industry and franchising experience.
- Asking current franchisees about their perception of the management team's competence and the quality of support provided is a key due diligence step.
- Your attorney can help you understand the potential impact if the key management personnel identified in the FDD were to leave the company.
Private Equity Ownership
High Risk
Explanation
The franchisor's ultimate parent is The Riverside Company, a private equity firm. This ownership structure can introduce risks, as private equity firms often have a primary goal of maximizing short-term investor returns. This focus could potentially lead to decisions, such as increasing fees, reducing franchisee support, or a quick sale of the company, that may not align with your long-term profitability and success.
Potential Mitigations
- Researching the private equity firm's reputation and track record with other franchise brands they have owned can provide valuable insight; a business advisor can assist with this.
- It is important to ask current franchisees if they have observed any significant changes in support or strategy since the private equity acquisition.
- Your attorney should review the franchise agreement for terms related to the sale or assignment of the franchise system.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The FDD discloses that Frenchies, LLC is part of a multi-layered corporate structure under BCC Services Holding Company. The financials provided are for the ultimate parent, which guarantees performance. While this meets disclosure rules, it means you must analyze the health of a large, complex consolidated entity rather than just the franchisor itself. The financial stability of this parent is directly tied to the franchisor's ability to support you.
Potential Mitigations
- Having your accountant carefully analyze the consolidated financial statements in Exhibit F is crucial to understanding the overall financial health of the entire corporate family.
- Your attorney should examine the specific language and enforceability of the parent company's Guarantee of Performance.
- Ask the franchisor to explain the corporate structure and the flow of funds between the parent and the Frenchies brand.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package, as the franchisor states it has no predecessors. When a franchisor has predecessors, it is important to investigate their history. A predecessor with a record of litigation, bankruptcy, or high franchisee failure could indicate underlying problems with the business model or management that may have been inherited by the current franchisor.
Potential Mitigations
- Your attorney should verify the franchisor's statement about having no predecessors through public record searches.
- If predecessors are disclosed, asking long-tenured franchisees about their experiences under previous ownership is important due diligence.
- A business advisor can help you research the business reputation of any disclosed predecessor entities.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package, as Item 3 discloses no material litigation. A pattern of lawsuits, especially those initiated by franchisees alleging fraud, misrepresentation, or breach of contract, can be a significant red flag. It may suggest systemic problems within the franchise, such as poor franchisee relations, unfulfilled promises, or issues with the business model's viability.
Potential Mitigations
- It is beneficial to have your attorney conduct an independent search for litigation involving the franchisor, as the FDD only requires disclosure of 'material' cases.
- Asking current and former franchisees about any past or present disputes they are aware of can provide insight beyond the official disclosures.
- Your business advisor should help you understand that a clean litigation record is a positive sign, but not a guarantee of a trouble-free relationship.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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