THE TEN SPOT

Item 7 of the 2025 FDD pegs initial investment at $377,500 to $530,000 per unit, covering build-out for these grooming boutiques in competitive markets—high for beauty services where many peers start under $300K. Ongoing fees bite at 6% royalty, 2% brand fund, plus a $375 monthly technology surcharge, totaling around 8% plus fixed costs that could pressure slim margins without volume. No Item 19 means no disclosed average revenues or profits, a red flag for due diligence as it leaves franchisees guessing on payback in a seasonal industry targeting general consumers.

System health shows fragility: only 3 locations in 2024 growing to 4 in 2025 (+33%), with just 1 projected new unit amid 7 SBA loans averaging $360,229—suggesting lenders back it but at scale that screams high risk for single-unit owners. No major litigation noted, but the small footprint since 2018 under Gale Force Holdings signals untested multi-unit potential. For investors, this suits experienced operators chasing beauty trends with $400K+ liquidity, but the lack of earnings data and slow rollout make it riskier than established spa chains—proceed only if you thrive on ground-floor plays.