DAVI NAILS

Item 7 lays out a relatively accessible entry: initial investment from $57,000 to $125,000, including a hefty $65,000 franchise fee, with the franchisor handling sub-leases, buildout, equipment, and furnishings for Walmart locations. Ongoing fees stay modest at $300-$1,000 monthly franchise fee, plus rent of $1,000-$7,500 per month and $75-$400 rent tax—no royalty percentages or ad fund contributions, keeping pure costs predictable. Notably, Item 19 is not disclosed, leaving franchisees without validated average revenues or profits; this opacity forces reliance on anecdotal validation, amplifying risk in a competitive beauty sector where margins hinge on foot traffic.

System metrics in Items 20 and 21 paint a maturing but pressured network: 387 locations as of 2024, down 4% from 401 in 2023, with just 4 projected new units signaling tepid expansion. Terminations hit only 1 (a strong low), but 33 non-renewals and 30 transfers suggest dissatisfaction or better opportunities elsewhere, eroding stability. SBA data shows minimal lending activity—one loan averaging $50,000—indicating limited bank confidence or franchisee financing needs. For entrepreneurs eyeing Walmart's captive audience since 2010, the model's affordability shines, but contraction and disclosure gaps demand caution before committing.