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Island Beauty Supply

Beauty 101, LLC

Company Information

445 Keawe Street, Honolulu, HI96813

[email protected]

The Island Beauty Supply™ business model has been developed to offer for sale a wide selection of different types and exclusive brands of hair care and beauty enhancing products, tools, accessories and equipment typically made available only to licensed industry professionals and now available to anyone. Our philosophy is centered on offering professional grade hair, beauty and personal care-related products, tools, accessories and equipment to everyone at affordable prices while providing them with personal service, value and convenience all in a casual environment. This is a retail store typically located in shopping malls, strip centers or free standing structures (all of which must be approved by us). Each Island Beauty Supply™ franchise will offer for sale: different types and brands of hair care products (such as: shampoos, conditioners, serums, gels, pomades, waxes, dyes, sprays, etc.), cosmetic products (such as: makeup, face products, lip products, brow products, eye products, etc.), skin care products (such as: moisturizers, creams, oils, toners, face washes and masks, etc.), nail care products (such as: polishes, extensions, nail growth products, nail oils and creams, etc.), a variety of different beauty and personal care-related tools (such as: hair dryers, curling irons, hair clippers/trimmers, grooming accessories, makeup applicators and kits, manicure and pedicure systems, etc.) and different accessories (such as: hair holders, skin gems, wearable face jewelry, etc.) and limited apparel in addition to offering for sale different types and models of commercial-grade hair, beauty and personal care-related equipment to everyone however intended to be sold to salons, spas and other businesses or professionals providing such services (such as: towel warmers, tool sterilizers, chair dryers, lamps, furnishings and fixtures) and other beauty-related merchandise approved by us. We may authorize you to sell additional products and offer services in the future such as: product demonstrations, educational classes or events, temporary body art services, piercing services and other beauty or personal care-related trending products and services approved by us. Competition includes other beauty supply retail stores, specialty retail stores, discount retail stores and department stores operated by national chains, franchised operations and independently owned retailers offering similar products and equipment to those found in an Island Beauty Supply™ business. You may also face competition from Internet websites. Your typical customer could be anyone seeking to purchase professional grade beauty supplies, personal care products and/or equipment and also salons, spas or personal grooming businesses in your area that provide grooming or personal care services. Generally there is no seasonality to this business. The retail industry in general is highly competitive throughout the United States as the market is continuously changing and evolving. We plan controlled expansion into areas that we determine can support an Island Beauty Supply™ business to improve name recognition and our reputation through franchised businesses. The Island Beauty Supply™ businesses are characterized by our: distinctive, unique and recognizable exterior and interior layout, content, décor, color scheme, display signs and furnishings; different types and brands of products and equipment offered, our proprietary rewards program, operational strategies, methods, techniques and procedures; vendor and supplier relationships, specifications for all equipment, products and supplies used, purchasing strategies and inventory management systems; merchandising, sales techniques and presentation standards, customer service, procedures for cleanliness, safety, sanitation and quality control; a regional franchise web page housed within our national website, guidelines for hiring, training and retaining employees; outside sales strategies and presentations, marketing, advertising and promotional materials; our confidential operations manual (“Operations Manual”) and other manuals which are made available either in hard copy or electronically; all of which may be changed, improved, and further developed by us periodically (collectively, the “System”). The System is identified by means of certain trade names, service marks, trademarks, slogans, logos, emblems, and indicia of origin, including, but not limited to, the mark with designs “Island Beauty Supply” and “Island” which was filed on December 22, 2016, and are pending on the principal register of the United States Patent and Trademark Office, bearing serial numbers 87278308 and 87278493 respectively. The word mark “Island Beauty Supply”, which was filed on December 22, 2016 and is also pending registration on the principal register of the United States Patent and Trademark Office, bearing the serial number 87278173. You will be licensed to use not only these marks and designs, but also all other service marks, trademarks, slogans, logos, emblems and product labels as we may designate for use in connection with the System (collectively, the “Marks” and each a “Mark”). There can be no guarantee of your success, as there exist both typical and special business risk factors. These include: changing market conditions, competition, cost of equipment, products and supplies, sales tax, real estate market, capital, labor, your own health, continuity of your management, continuation of sources of supply, availability of financing, recession or depression locally or nationally, wars, strikes, acts of terrorism, emergencies whether natural or manmade, litigation, liability and casualty losses. Other risks that may affect your business include but not limited to: industry developments, pricing policies of your competitors, state licensing or permit requirements, supply and demand and your dependence on key personnel, the loss of whom could have an adverse effect on your Business. The purchase of an Island Beauty Supply™ franchise is a speculative and significant investment beyond that outlined in this Disclosure Document that may be required to succeed.

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

10/10

Investment Accessibility

10/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $22,500 Maximum: $22,500

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $210,940 Maximum: $478,300

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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