What was the median gross revenue for the bottom 1/3 of Deka Lash studios?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Top 1/3 | Middle 1/3 | Bottom 1/3 | |
|---|---|---|---|
| Number of Studios | 37 | 36 | 36 |
| Average of Gross Revenue | $495,184 | $287,860 | $152,349 |
| Median of Gross Revenue | $458,763 | $278,672 | $162,457 |
| Number of Studios Which | 13 of 37 (35%) | 15 of 36 (42%) | 21 of 36 (58%) |
| Attained or Surpassed Average | |||
| Highest 5 Studio Revenues in Performance Segment | |||
| $ 795,220 | $ 358,241 | $ 226,592 | |
| $ 758,843 | $ 355,627 | $ 223,306 | |
| $ 758,433 | $ 351,747 | $ 219,967 | |
| $ 684,197 | $ 340,792 | $ 219,319 | |
| $ 599,102 | $ 339,459 | $ 219,312 | |
| Lowest 5 Studio Revenues in Performance Segment | |||
| $ 387,910 | $ 252,708 | $ 91,714 | |
| $ 385,286 | $ 240,931 | $ 73,330 | |
| $ 383,126 | $ 235,188 | $ 50,499 | |
| $ 379,655 | $ 233,466 | $ 38,827 | |
| $ 367,617 | $ 229,715 | $ 30,645 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–57)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the median gross revenue for the bottom 1/3 of studios was $162,457. This data is based on the performance of 109 franchised locations that were open and operating for at least 12 months as of December 31, 2023. It's important to note that this is a historical representation and Deka Lash emphasizes that individual results may vary, with no assurance that a new franchisee will achieve the same level of revenue.
The FDD also provides additional context by showing the range of revenues within this bottom segment. The highest revenue among the bottom third was $226,592, while the lowest was $30,645. This wide range highlights the potential variability in performance among Deka Lash studios, even within the same performance segment. A prospective franchisee should consider these figures as a broad indication of potential revenue rather than a guarantee.
It is also important to understand what "Gross Revenue" includes, as defined in the FDD. For Deka Lash, it encompasses all revenue generated from the franchise, including sales, memberships, prepaid programs, rentals, products, apparel, services, and even revenue from deal sites like Groupon. However, it excludes sales tax, returned merchandise, and isolated sales of furniture or fixtures. Understanding this definition is crucial for accurately interpreting the financial performance representation and comparing it to your own potential revenue streams.
Prospective franchisees should carefully review the complete Item 19 in the FDD and request written substantiation for the financial performance representation to gain a more comprehensive understanding of the factors influencing studio revenue. They should also consider conducting their own market research and due diligence to assess the potential for their specific location and business plan.