About Lice Clinics of America Franchise
Lice Clinics of America is a health services franchise that has been franchising since 2013, specializing in professional head lice treatment using advanced medical devices and proven protocols.
The brand offers a fast, effective, and discreet solution for families dealing with lice infestations, replacing home remedies and over the counter products with clinical grade treatments performed by trained technicians.
The franchise fee is $35,000.
Lice Clinics of America Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Sales | National brand fund |
| Total Investment Range | $70,350 – $111,400 | Includes build-out, inventory, working capital |
The investment range of $70K–$111K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales) and marketing fee (4% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $35,000 | $35,000 |
| Clinic Lease – Security Deposit and 3 Months’ Rent | $4,800 | $8,000 |
| Equipment and Furniture | $7,200 | $13,000 |
| Leasehold Improvements | $0 | $14,000 |
| Signs and Promotional Displays | $500 | $7,000 |
| Device Deposits (Refundable) | $2,600 | $5,200 |
| Advertising and Promotion | $5,400 | $6,600 |
| Initial Training | $2,000 | $2,000 |
| Device Certification | $200 | $400 |
| Travel Expenses for Training | $1,600 | $3,800 |
| Other Prepaid Expenses and Deposits | $1,400 | $1,700 |
| Miscellaneous Pre-Opening Expenses | $1,000 | $1,200 |
| Additional Funds – 3 Months | $6,000 | $8,000 |
| Supplies and Initial Inventory or Retail Products | $2,400 | $5,000 |
| Background Check | $250 | $500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Technology Fee | $380 for each Clinic; $230 for each Satellite |
| Audit Fee | Will vary under the circumstances |
| Late Fee | Accrued interest of 1.5% per month |
| Minimum Royalties | $9,000 a year for the Territory, starting the first 12 months after your Clinic is opened |
| Device Replacement | $1,300 for a new deposit on the Device, plus shipping and handling |
| Indemnification | Will vary under the circumstances |
| Costs and Attorneys’ Fees | Will vary under the circumstances |
| Additional Training | $2,000 per additional training session |
| Certification Fee | $100 per person that we train and certify on the use of the Devices |
| Modernization and/or replacement | Will vary under the circumstances, but not to exceed $10,000 |
| Minimum Advertising | $1,000 per month |
| Franchise Convention | $1,000-$2,000 a year |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Owner Training will last two full days. Initial training consists of 20 hours classroom training and 11 hours hands-on training. |
| Classroom Training | 20 |
| On-the-Job Training | 11 |
| Training Location | Owner training is provided at a location of our choosing, generally in the Salt Lake City offices and clinic, but may also be done via teleconference. Device training is Via Internet. |
| Additional Training | Additional training may be available and/or required from time to time. This may be available only at specific locations, although we will make efforts to provide regional and online training where applicable. As further described in Item 6, tuition for any additional training will be $2,000. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | comprised of certain zip codes |
| Description | You will operate your Clinic at an approved site located within the Territory (also called an Exclusive Territory or Designated Territory). You will receive an Exclusive Territory comprised of certain zip codes and described on the Data Sheet of Schedule A of the Franchise Agreement. Provided you are current in all your financial and all other contractual obligations under the Franchise Agreement, you will be allowed to develop and operate a Clinic and any Satellites within the Exclusive Territory during the term of the Franchise Agreement, meaning that you will have the right to use the Device in a Clinic physically located in your Territory and we will not establish any other franchised or company-owned Clinic located inside the Territory, or modify your Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Five years |
| Renewal Term | An additional five years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Indicate intent to renew 6-12 months prior to end of the term; sign then-current form of franchise agreement, which may contain materially different terms and conditions than your original Franchise Agreement; complied with modernization requirements; must not be in breach; renewed the lease through renewal period; comply with then-current training requirements; pay a $5,000 renewal fee; sign a general release. |
| Transfer Fee | $10,000 |
| Transfer Conditions | With payment of $10,000 transfer fee; payment of all amounts owed; approval by us; modernization completed; all reports submitted; you signing a general release; transferee completing training; and transferee meet our then-current standards and signing our then-current franchise agreement. |
| Termination for Cause | We have the right to terminate this Agreement with no cure period for incurable defaults (e.g., material misrepresentation, voluntary abandonment, loss of lease due to breach, closing for health/safety reasons, failure to open clinic on time, unauthorized use of proprietary information, failure to maintain insurance, insolvency, materially impairing goodwill, felony conviction, underreporting Gross Sales, violating anti-terrorism laws, unauthorized transfer, multiple similar defaults, failure to pay fees for more than 60 days, selling Professional Services Products, failure to cure breach of other agreement). For curable defaults, a 30-day cure period is typically provided (10 days for failure to pay or submit reports). |
| Non-Compete Period | two (2) years after the expiration or termination of this Agreement |
| Non-Compete Details | You agree not to own, manage, operate, maintain, engage in, consult with or have any interest in a competing business at the premises of the former Clinic, within 10 miles of the outer boundary of the Designated Territory, or within five miles of another Lice Clinics of America clinic for a period of 2 years after your Franchise Agreement expires or terminates. You also agree not to use heated air to treat head lice in a business for so long as we have granted or licensed exclusive patents on using heated air in treating ectoparasites. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | During the term of your Franchise Agreement we require that either you, another owner, or your Clinic manager must devote full time and best efforts to the management and operation of your Clinic. We require that you and any other owner get trained in the operation of your Clinic, and trained and certified in the operation of a Device. You will have a better chance of being successful in your Business when you are actively involved in the operation and marketing of your Clinic. We require that your Clinic has an on-premises manager if you or another owner are not actively managing the Clinic. If you hire a manager before opening your clinic, we require that manager to attend owner training prior to your Clinic opening. Any on-premises manager you hire does not need to own any equity in you, if you are a business entity. We require personal guarantees from all owners of the franchisee. |
| Required Suppliers | We are currently the sole source of Devices and Device Accessories you are required to use in your Clinic. Our Approved Suppliers are the sole source of the Professional Services Products you are required to use in your Clinic, the Clinic Retail Products you are required to sell in your Clinic, the Consumer Devices and the Consumer Tips. You must purchase fixtures, equipment, furniture and signs from our list of Approved Supplies or Approved Suppliers. |
| Supply Restrictions | To ensure a uniform quality of lice treatments across LSI’s franchised Clinics, you must offer lice treatments using the Device from your Business and no other heated-air treatments, and must maintain and comply with our quality standards relating to the use and maintenance of all Devices. You also must offer for sale from your Clinic and Business certain lice-treatment products. Products, services, inventory, equipment, fixture, furnishings, signs, advertising materials, trademarked items and novelties, and other items or services to be used in the operation of your Clinic (the “Approved Supplies”) must be purchased from manufacturers, distributors and/or suppliers (the “Approved Suppliers”) that we have approved prior. |
| Franchisor Revenue from Suppliers | $416,290.88 from our franchisees for purchases of Device Accessories, Meevo subscriptions, digital marketing services and Clinic Retail Products, which represented 8.5% of our total revenue of $4,884,016 in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We may, at our sole and absolute discretion, provide installment payment plans to qualified franchisees for the Franchise Fee. The terms of the installment payment plan will depend on the number of territories purchased, the timeframe to open the clinics of the designated territories purchased, and the creditworthiness of the franchisee. Any installment plan requires a minimum of a 5% down payment and a term not to exceed 48 months. We do not charge interest for financing. We don’t have specific finance charges or penalties for non-payment of the installment plan other than our standard Late Fee that applies to any amounts not paid on time. All Franchise Fees made under an installment plan are non-refundable. |
Lice Clinics of America Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Lice Clinics of America Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Lice Clinics of America System Growth
Lice Clinics of America currently operates 140 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 23 | 28 | 182 |
| 2020 | 13 | 20 | 175 |
| 2021 | 8 | 42 | 141 |
Transfers: 12 | Closures: 57
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by Bangerter, Lund & Associates for year ending December 31.
Lice Clinics of America Franchise — FAQ
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