Lice Clinics of America
Bottom line
- Total investment $120K – $168K including a $80K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $241K/year.
- Rated CAUTION with a risk score of 69/100.
- System contracting at -19.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Lice Clinics of America unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Lice Clinics of America units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$530K
on $2.6M purchase
Total debt
$2.1M
SBA $1.3M + senior + seller note
Overview
About
Lice Clinics of America operates medical-grade lice removal clinics serving families and schools. Franchisees typically manage a small clinic (1-2 treatment rooms) where trained staff apply FDA-cleared or pesticide-free treatments, provide combing services, and sell prevention/maintenance products. Day-to-day operations include scheduling appointments, managing inventory, staff training, infection control protocols, and customer follow-up care.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk franchise with a contracting system, active litigation against franchisees, regulatory compliance issues, and insufficient financial transparency to validate unit economics.
Score breakdown · what drove the 69 / 100 rating
- 01MEDSystem contracting sharply (-11.9% YoY decline from 101 to 89 units) indicates franchisee failure or mass exits
- 02MINORFour active breach of contract/non-compete lawsuits filed by franchisor against franchisees in 2024 alone suggests franchisor-franchisee conflict and enforcement issues
- 03MINORThree regulatory settlement orders in California, Virginia, and Washington indicate compliance failures or customer protection violations
- 04MINORAverage revenue of $240,845 generates only ~$19,268 in annual royalties (8%), making 8% royalty burden heavy on thin margins
- 05MEDNet income not disclosed in Item 19 prevents verification that $240K revenue supports living wage after royalties, rent, labor, and supplies
- 06MEDHigh initial investment ($120K-$168K) combined with declining unit count and undisclosed profitability creates poor risk-reward ratio
- 07MINORFive-year term is relatively short given capital investment and client acquisition ramp time in service business
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Lice Clinics of America · FDD (2025) PDF