Status Update Communication

Hi Xie Wen Hong,

We are writing to give you a status update. We have been working very hard on your locations, however they have not gotten to the point of break even.

Your best location, Vista, had a pipe break under the slab of the building. It has since been repaired, but caused the store to have construction performed during operational hours. We determined that the break was the landlords responsibility and the landlord filed the insurance claim and paid for the damages.

Your location Vista is performing well as far as guest count. Your second location in Oceanside got off to a strong start and is performing well even though it is still relatively new.

We are concerned that the investment will run out of capital prior to the locations breaking even. The current combined bank balance is $39,344. We consider this a critical situation.

We have sent an additional manager and trainer to the locations to get the ticket averages up to a more sustainable amount. This manager is spending 2 + full days per week at your locations to get them to breakeven.

We have a proforma break even plan prepared for you. We will be sending it so that you can check month by month the progress on the locations and see if we are hitting the numbers. From the plan we believe an additional $33,000 is required to get the locations to break even. We are preparing a more formal letter regarding this but wanted to give you an update now.

You visa is being processed by the USCIS. We received a request for evidence from the USCIS yesterday. We have contacted your immigration attorney to let them know and to ask what evidence they are requesting. We are prepared to turn the evidence around quickly. We are told by immigration counsel that when the RFE or request for evidence is processed, the I-526 should be completed in about a month.

Please let us know if you have any questions or would like to discuss this.

Sabrina

Comments (1)

  1. Sabrina Wall :

    We are changing the list price for services to an additional $3 at both locations, Oceanside will be $9.99 and Vista will be $12.99. We feel that this will help get us closer your salons to profitability. We will be closely monitoring the guest count to assess the impact of the price change.

    We are calling all of your customers in the next week to thank them for their business and ask them to return. That is roughly 6,000 customers.

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