Regal Nails Salon & Spa
Bottom line
- Total investment $173K – $721K including a $25K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
- System contracting at -8.0% 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 Regal Nails Salon & Spa unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Overview
About
Franchisees operate full-service nail salons and spas offering manicures, pedicures, gel treatments, and related beauty services. Day-to-day operations include managing 5-15+ staff members (nail technicians, aestheticians), maintaining salon cleanliness and sanitation compliance, scheduling appointments, inventory management of nail products and supplies, and customer service delivery in a retail salon environment.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Regal Nails presents HIGH RISK due to contracting unit base, undisclosed financials, regulatory violations, and franchisor stability concerns despite moderate franchise fees.
Score breakdown · what drove the 72 / 100 rating
- 01MINORDeclining unit count (-4.8% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment despite high investment range ($172k-$720k)
- 03HIGHLitigation history includes collection lawsuits against franchisees and state regulatory violations in Virginia and California for franchise registration non-compliance
- 04MINORHigh royalty range ($500-$15,000/month) lacks transparency on how tiers are determined and creates unpredictable cost structure
- 05MINORUnprotected territory creates direct competition risk between franchisees within same market
- 06HIGH'Going Concern' status is False, suggesting potential financial instability of franchisor
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Regal Nails Salon & Spa · FDD (2025) PDF