A bunch of Wonderful Lash Studio franchisees has shaped an unbiased affiliation and is asking for “new govt management and infrastructure, together with eradicating predatory enterprise practices and overhauling firm tradition,” they mentioned in a press launch despatched to Franchise Instances however not but launched to the general public.
“The rampant value gouging, the elimination of important sources and the blatant retaliation towards franchisees don’t characterize the company values that existed once we purchased into the corporate as franchise house owners,” the discharge mentioned. “We should advocate for significant change to avoid wasting our companies. Our studios characterize our American Dream, and now our goals are in danger.”
The group is known as The Franchise Alliance Inc., shaped inside the final “three to 6 months” and arranged by the legislation agency they retained, Zarco Einhorn Salkowski of Miami, named associate Robert Einhorn mentioned in an interview this week.
“We have carried out some work for some particular person franchisees, and that led to a formation of the affiliation,” which was shaped as a personal group, not one listed on the American Affiliation of Franchisees & Sellers or different platforms, Einhorn mentioned.
He didn’t cite the variety of members within the affiliation however mentioned “they’re in development mode.” The group is “very upset with the model, notably with respect to the availability chain,” he mentioned.
“What highlighted issues for franchisees was COVID,” throughout which Wonderful Lash was “unable to offer product to franchisees, and franchisees went out and sourced merchandise on their very own,” with tacit approval from company, he mentioned.
“The franchisees got here to be taught they had been capable of supply increased high quality product at a small fraction of the value,” that Wonderful Lash was offering and charging them for.
“The markup on the lash product was about 500 to 800 p.c,” mentioned Brenda Phang, one other Zarco legislation agency legal professional representing the affiliation.
Wonderful Lash Studio is a division of WellBiz Manufacturers, owned by KSL Capital Companions and primarily based in Denver. Jeremy Morgan was named CEO of WellBiz in June 2019. Stephanie Hu was named CEO of Wonderful Lash Studio in October 2020 however left a yr later; Morgan is accountable for the model.
A request to interview Morgan or one other govt was declined. WellBiz despatched a press release saying, “On the Wonderful Lash Studio model, supporting franchise house owners and their efforts to offer the high-quality companies and unmatched visitor expertise clients anticipate is a prime precedence.
“The Wonderful Lash Studio model and its Assist Heart present quite a few significant sources and material consultants who help franchisees throughout key features—together with digital advertising, membership, stylist recruiting and coaching, and expertise—whereas making certain franchisees have entry to accredited suppliers that present inexpensive merchandise that meet the model’s stringent high quality, security, and sourcing necessities.
“The Assist Heart takes nice pleasure within the development of the Wonderful Lash Studio model and the world-class help supplied to franchise house owners.”
Learn right here about WellBiz Manufacturers development and challenges throughout COVID-19.
Einhorn mentioned he was not licensed to talk additional on behalf of The Franchise Alliance, and members is not going to communicate on the report as a result of they concern retaliation. “The bullying has been occurring even earlier than we acquired concerned,” with studio house owners who spoke out threatened with closure, he mentioned.
“The problem right here, for us and for you, is that the franchisees are desperately apprehensive about retaliation,” Einhorn mentioned. He’s “not licensed” to call the management of the group, and he doesn’t know which members of the chief staff the group seeks to switch.
Einhorn added there may be “disagreement among the many group” even about placing out the press launch despatched to Franchise Instances, and over its content material.
The press launch says partly:
Franchise house owners of Wonderful Lash Studio “are sounding the alarm on the corporate’s predatory enterprise practices, together with a greater than 500 p.c markup on stock,” it mentioned.
“The group of ALS franchise house owners are calling for company accountability to forestall a mass exodus from the model that noticed $600 million in systemwide gross sales, and awarded practically 150 franchise licenses opening areas in 20 new markets in 2022.”
This story was up to date with Stephanie Hu’s standing; the previous CEO of Wonderful Lash Studio left in October 2021.
