Optima Salons Suites Investment Costs & Fees
Date of Incorporation: 2017
Headquarters: Beverly Hills, California
Operated and Managed by: Optima Salon Suites
Business Description: OPTIMA SALON SUITES , Suite Management, offers Business Opportunity of Salon Suite Management for the operation of: (i) turnkey salon suite studios and related services in a luxury environment under the brand OPTIMA SALON SUITES to salon professionals where such professionals can provide health and beauty services to their own respective clients; and (ii) turnkey salon suite studios and related services featuring upscale modern décor under the brand OPTIMA SALON SUITES professionals where such professionals can provide health and beauty services to their own respective clients.
Business Opportunity Offer: Business Opportunity of Salon Suite Management that operate under its proprietary system. One is for the use of the “OPTIMA SALON SUITES” trademarks, trade names, service marks, and logos for the operation of OPTIMA SALON SUITES Businesses. The other is for the use of our “OPTIMA SALON and NAIL SUITES” trademarks, trade names, service marks, and logos for the operation of OPTIMA Businesses.
Business Opportunity Assistance: OPTIMA LENDING GROUP, offers financing for the initial business investment, construction costs, real estate improvements, fixtures, furniture, and signs. At its sole discretion, OPTIMA LENDING GROUP may offer up to 25% of the investment and financing for other items associated with their operation. The financing will be in the form of a loan. OPTIMA FUNDING GROUP, a technology-enabled, non-bank lender focused exclusively on the Salon Suite Management industry, offers financing to our operators and investors. OPTIMA LENDING GROUP products are available to single and multi-unit locations for refinancing existing debt obligations, purchasing new units, acquiring existing units and remodeling existing units. None of the financing sources described are affiliated with the OPTIMA Corporation and it does not receive any direct or indirect payments for placing financing with them. Generally, the OPTIMA Corporation does not guaranty any of the business operator obligations to the third-party lenders described above, however it may, at our sole discretion, choose to do so. In addition to the financing arrangements described, if requested, the OPTIMA Corporation may assist Business Operators in obtaining other financing. Financing terms and interest rates will vary depending on the financial institution and the financing program offered by that institution.
Training and Assistance: OPTIMA Corporation and any designated manager or representative must complete the initial training to the training satisfaction before they open their OPTIMA Business. OPTIMA Corporation provides initial training at no charge for up to 2 people. The initial training consists of 12 hours of classroom training and 4 hours of on-the-job training. From time to time, OPTIMA Corporation may require that designated managers, and other employees attend OPTIMA Corporation System-wide refresher or additional training courses. Some of these courses may be optional, while others may be required. OPTIMA Corporation may also request that the OPTIMA Operators provide additional training (either at corporate headquarters or at their Business).
Territory: Under the Agreement, OPTIMA Corporation grants an exclusive Protected Territory determined in its sole discretion where it will not open, operate, or license any third party the right to own or operate a Business utilizing the Marks. The size of the Protected Territory may vary from other OPTIMA SALON SUITES based on the location and demographics surrounding the Approved Location, but the typical Protected Territory will be a radius of 2 miles. In certain densely populated metropolitan areas or sparsely populated rural areas, a territory may be considerably smaller or larger.
Term of Agreement and Renewal: The length of the initial agreement term is 10 years. If OPTIMA Corporation are in good standing and they meet other requirements, they may enter into 2 consecutive successor terms of 10 years.
Obligations and Restrictions: OPTIMA Corporation (or one or more of the principals are a corporation or partnership or limited liability company) will personally supervise the day-to-day operations of the Business at OPTIMA Headquarter, OPTIMA Corporation must devote their best efforts to the management and operation of the OPTIMA SALON and Nail SUITES. OPTIMA Corporation may, however, delegate the day-to-day operation of the Business Operation to a manager (the Designated Manager), provided that the Designated Manager successfully completes the Initial Training Program before assuming any managerial responsibility and otherwise meets the then-current standards for a Designated Manager. OPTIMA Corporation must sell or offer for sale only those Approved Products and Services authorized by the OPTIMA Corporate Office and which meet its standards and specifications. OPTIMA Oprators must follow the OPTIMA Corporation business policies, procedures, methods, and techniques.
Initial Investment to Open a OPTIMA SALON SUITES
|Name of Fee||Low||High|
|Initial Franchise and Legal Fees||$40,000||$50,000|
|Travel and Living Expenses||$1,500||$3,000|
|Rent or Real Estate Security Deposit||$10,000||$50,000|
|Furniture and Fixtures||$50,000||$90,000|
|Site Evaluation Fee||$00.00||$3,500|
|Grand Opening Advertising/Marketing (3 months)||$3,000||$8,500|
|Architectural Design and Plan Fees||$17,500||$20,000|
|Standards Legal Fee||$2,500||$5,000|
|Additional Funds (First 3 Months)||$10,000||$30,000|
|Other Construction Fees and Change Orders (If any)||$?||$?|
|ESTIMATED TOTAL INVESTMENT:||$454,500||$941,000|
Other Fees to Open an OPTIMA SALON SUITES
|Type of Fee||Amount|
|Franchise Fee||5% of Gross Revenues.|
|Brand Building Fund Contribution||Up to 2% of your monthly Gross Revenues or a minimum of $250 a month.|
|Cooperative Advertising||As determined by cooperative.|
|Unauthorized Advertising Fee||$500 per occurrence.|
|Site Selection Assistance||Then-current fee (currently $500 per day plus travel and living expenses).|
|Insurance Policies||Cost of insurance premiums.|
|Initial Training for Additional Persons||$2,000 per person after the First 2|
|Additional Assistance and Training||Then-current fee (currently $500 per day plus travel and living expenses).|
|Technology Fee||Then-current fee (the OPTIMA Management does not currently charge this fee), OPTIMA App.|
|Convention Fee||Then-current fee (currently estimated to be $500 per person).|
|Inspection and Testing||The costs the incurs in testing/inspecting your Proposed product/supplier (estimated to be between $100 to $500)|
|Customer Issue Resolution||Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.|
|Payment Service Fees||Up to 5% of the total charge.|
|Interest for OPTIMA Investment Loans||Lesser of 7.5% per month or the maximum rate permitted by law.|
|Returned Check or Insufficient Funds Fee||$50 per occurrence.|
|Failure to Submit Required Report Fee||$100 per occurrence and $100 per week.|
|Audit Expenses||Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (estimates this cost to be between $1,000 and $15,000)|
|Relocation Fee||The costs would vary under circumstances.|
|Indemnification||Will varies under circumstances.|
|Professional Fees and Expenses||Will varies under circumstances.|