Frenchies Modern Nail Care Purchased by P.E. Firm The Riverside Company

The Riverside Company, the global investment firm, has announced the acquisition of Frenchies Modern Nail Care, the rapidly expanding nail care franchise with 24 locations across the country, according to Franchise Times. 

This acquisition marks Riverside's 50th in the franchise sector and adds Frenchies to its personal care services platform, joining another brand, Bishops, a salon concept. Its current portfolio also includes Threshold Brands (MaidPro, FlyFoe, Men in Kilts, Pestmaster, USA Insulation and others) and Evive Brands (Executive Home Care, Assisted Living Locators, Grasons Co.).

“At the core, we’re underwriting the macro trend that everyone is spending more dollars to make themselves look better and feel better,” said Grant Marcks, a partner on Riverside’s origination team, as he described the thesis of creating a multi-brand franchisor platform. “What we really like about Frenchies is it has that clean feel. A more professional feel. And that also attracts a higher quality technician.”

In 2014, Guy and Stephanie Coffey founded Frenchies Modern Nail Care with the ambition to create a national brand. Frenchies differentiates itself from typical nail salons by avoiding acrylic nails and harsh chemicals, focusing instead on customer service and a clean, airy atmosphere. This approach aligns with their motto, "We love clean," which resonated well with customers even before the pandemic. 

The Coffeys, former Anytime Fitness franchisees, opened the first Frenchies in Colorado to test their theory that customers would pay more for higher quality nail services and a better experience. By 2019, Frenchies had signed agreements for 100 locations, but the pandemic forced a pause in franchise development. During this time, the company focused on developing its product line and refining its business model.

Despite the pandemic's impact, Frenchies has seen a robust recovery, with Guy noting a significant increase in average ticket prices and top-line sales. Approximately 30% to 40% of monthly revenue comes from memberships, providing stability for franchise owners. Post-pandemic demand remained strong, dispelling initial concerns that it was merely a temporary surge.

The Coffeys, after evaluating various private equity firms, felt aligned with Riverside's vision and strategy for Frenchies. With the deal finalized on November 8, Guy Coffey will become the brand president of Frenchies, and the couple retains an ownership stake. Riverside's plan involves bolstering franchise sales and marketing, driving growth with current franchisees, and expanding into new markets. The acquisition also presents a unique phase for the Coffeys, transitioning from founders to playing a pivotal role in the brand's next growth stage.

“I haven’t worked for anybody since 1998,” said Guy. “We’re always going to be the founders, but our job was to grow it and now to deliver on the promises we’ve made to our team. We’ve built the foundation … and now we get to be part of the next stage."

For more information on Frenchies, visit: https://1851franchise.com/frenchies

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