From the filed FDD — automated extraction, check the source
2024 FDD · 1+ year old
LICE CLINICS OF AMERICA
Health & Wellness · parent company: not identified
Lice Clinics of America is a chain of clinics that treat head lice. Using a heated-air device and professional combing, technicians remove lice and eggs in a single in-clinic visit and sell take-home prevention products. A franchisee operates a small treatment clinic, performing or supervising lice removal appointments.
LICE CLINICS OF AMERICA net unit count declined 21.6% over 2021–2023 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Weaker disclosed record
Below our threshold on the operating record we compute from Item 20 — unit growth, the mix of exits, owner turnover and promise-keeping. What pulls it down: units fell 22% (2021–2023: 134 → 105); most exits were terminations or closures rather than transfers to new owners; the fiscal 2023 exit rate was 16.7%, well above the 1.9% median across 25 comparable systems (health & wellness). This is our opinion of the filing, not a finding about the franchisor's finances.
Exit rate · fiscal 2023
16.7%
vs 1.9% median across 25 comparable systems (health & wellness)
Cost to open
$91K–$139K
Item 7 total investment range
SBA loan losses
Too few to rate
0 seasoned resolved loans; 30 needed
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Data as of 2026-10-29. Figures come from LICE CLINICS OF AMERICA's public FDD filings (latest: MN 2024, extracted 2026-06-19) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
What each source says
FDD record · SBA loans · model · auditor
The sources broadly agree, and the verdict follows the FDD's operating record.
FDD record · Item 20
Weaker operating record
Units fell 22% (2021–2023: 134 → 105); exit rate 16.7% (fiscal 2023) vs 1.9% median.
SBA loans · vs same-year loans
Too few seasoned loans
0 resolved loans approved by FY2020; 30 needed.
Modeled risk
Not scored
Too little evidence for the model.
Auditor opinion · Item 21
Not extracted
We did not extract the audit opinion.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2021–2023
Survival record
FDD Item 20 · outlet status by year
In fiscal 2023, 19 of 114 franchised outlets left the system — an exit rate of 16.7% (fiscal 2023), vs a 1.9% median across 25 comparable systems (health & wellness). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 174 | 134 | 115 |
| Opened | 7 | 3 | 9 |
| Transfers | 4 | 1 | 5 |
| Terminations | 3 | 8 | 2 |
| Non-renewals | 13 | 7 | 4 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 31 | 7 | 13 |
| Outlets at end | 134 | 115 | 105 |
| Net change | -40 | -19 | -10 |
The lender's view
SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years
Banks have made 1 SBA-backed loans to LICE CLINICS OF AMERICA franchisees since 2026. Only 0 of its loans approved by FY2020 have resolved — fewer than the 30 we need to compare it fairly with other franchise loans, so we don't rate it.
All-time, 0 of 0 resolved loans charged off (—). That raw figure mixes every approval year since 2026 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score. 100% of the brand's loans have not resolved yet.
—
0 seasoned resolved · 30 needed
—
0 of 0 resolved, every approval year
—
charged-off $ ÷ approved $, defaulted loans
$242,000
what recent franchisees borrowed
—
shown with 10+ defaults
—
distinct banks lending
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO LICE CLINICS OF AMERICA BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $49,500 franchise fee (Item 5) and a total investment of $91K–$139K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$91K–$139K
all-in investment range
Franchise fee (Item 5)
$49,500
upfront, one-time
Royalty (Item 6)
8%
of sales, ongoing
Starts at a placeholder of $500K — a round figure for the sector, not from LICE CLINICS OF AMERICA’s filings. Set your own figure and check it against this brand's Item 19 and what owners tell you.
Royalty you'd pay / yr
$40K
8% of sales, before profit
Over a 10-yr term
$400K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on staff payroll, insurance, rent, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for LICE CLINICS OF AMERICA with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2024 FDD
This filing makes an Item 19 earnings claim; we have not yet read how it is built. Open Item 19 and check which units it covers, which it leaves out, and whether it shows costs.
Show the basis ↓Hide the evidence ↑
Labor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 2 wage cases against operators of this system, recovering $716 in back wages for 7 workers. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
2
Back wages owed
$716
Employees affected
7
Since 2020
0
Read this carefully. The employers in these cases are individual LICE CLINICS OF AMERICA franchisees — separately owned businesses operating under the brand name — not LICE CLINICS OF AMERICA itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Cases are matched to the brand by trade name and may include misattributed employers. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2017.
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
We have no verified public-record signals published for LICE CLINICS OF AMERICA. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.
10 questions to ask a LICE CLINICS OF AMERICA franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what LICE CLINICS OF AMERICA has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
LICE CLINICS OF AMERICA’s own Item 20 shows 19 of 114 franchised outlets left the system in fiscal 2023 — about 16.7%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2023
- 02
5 units transferred to new owners in fiscal 2023. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2023
- 03
The system went from 134 units to 105 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2021–FY2023
- 04
Item 7 puts the cost to open at $91K–$139K, yet the average recent SBA loan to LICE CLINICS OF AMERICA franchisees was $242K — above the whole range. What did those loans pay for: new units, resales, real estate, several units at once? And what did you actually spend to open, all in?
A loan above the disclosed range can mean buyers routinely overspend Item 7, or that SBA money in this system funds resales, property or multi-unit deals. The filing doesn't say which; an owner can.
FDD Item 7 vs SBA approvals FY2020+
- 05
You pay 8.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 06
LICE CLINICS OF AMERICA makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2024
- 07
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 08
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 09
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 10
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
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A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing LICE CLINICS OF AMERICA’s numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
LICE CLINICS OF AMERICA franchise questions, answered from the filings
How many LICE CLINICS OF AMERICA franchised outlets left the system last year?
In LICE CLINICS OF AMERICA's latest FDD Item 20 (fiscal 2023), 19 of 114 franchised outlets left the system — an exit rate of 16.7% — compared with a 1.9% median across 25 comparable systems (health & wellness) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
How much does a LICE CLINICS OF AMERICA franchise cost?
Per LICE CLINICS OF AMERICA's 2024 FDD, buying in requires an initial franchise fee of $49,500 (Item 5) and a total initial investment of $91K–$139K (Item 7).
What royalty does LICE CLINICS OF AMERICA charge?
LICE CLINICS OF AMERICA charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2024 FDD.
Does LICE CLINICS OF AMERICA disclose earnings (Item 19)?
Yes — LICE CLINICS OF AMERICA makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.