FranchiseVerdict
Blo Blow Dry Bar logo
FV-00327·STRONGExcellent91

Blo Blow Dry Bar

Food & Beverage - Full ServiceFranchising since 2010Website
Investment
$309K – $403K
37th pct Full Service
Avg revenue
$378K
2nd pct Full Service
Royalty
6.0%
54th pct Full Service
Units
101
83rd pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $309K – $403K including a $45K franchise fee, 6.0% ongoing royalty.
  • Average unit revenue of $378K/year (median $346K).
  • Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 89 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
BLO BLOW DRY BAR INC.
Parent company
Blo Blow Dry Bar Holdings, Inc.
Incorporated in
Delaware
HQ
1867 Yonge Street, Suite 600, Toronto, Ontario, Canada M4S 1Y5
Auditor
DANSA D’ARATA SOUCIA LLP
Audited financials
Franchisor revenue
$2.4M
vs $2.9M prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Blo Blow Dry Bar unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $378,129
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $309K–$403K
Working capital
$
FDD reports $15K–$25K

Unlevered ROIC · per unit

15%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$57K
EBITDA margin
15.0%
Total invested
$376K
Payback
79 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Blo Blow Dry Bar units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$605K

on $3.0M purchase

Total debt

$2.4M

SBA $1.5M + senior + seller note

Overview

About

Blo Blow Dry Bar franchisees operate a beauty services location offering professional blow-dry styling and hair treatments. Day-to-day operations include managing stylists, scheduling appointments, retail product sales, managing walk-in and appointment-based customer flow, and maintaining brand standards for service delivery and salon ambiance.

CEO
Vanessa Melman Yakobson
Founded
2009
FDD year
2025
States available
30

Item 7 · what it costs

The Vitals

Total investment
$309K – $403K
All-in to open one unit
Liquid capital
$15K – $25K
Cash you must have on hand
Franchise fee
$45K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$378K
Per unit, per year
Median gross sales
$346K
Item 19 type
Gross Sales and Members
Sample size
87 units
vs category median 15 · large
Range (low → high)
$103K$1.1M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank2th
vs Food & Beverage - Full Service peers
Investment cost rank37th
Lower investment ranks lower (better)
Royalty rate rank54th
Lower royalty = lower percentile (better)
Unit count rank83th
vs Food & Beverage - Full Service peers
Risk score rank1th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
101
Opened
14
Last reporting year
Closed
3
Turnover rate
3.0%
Company-owned
1
Corporate units in the system
% franchised
99%
vs corporate-owned
Net growth (yr3)
+12.4%
Net unit change last year
3-yr CAGR
+23.5%
Compounded over last 3 years
2023
100+11
Franchised units
2024
89
Franchised units
2025
81
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 30 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 30 states
Not registered

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.

Total loans
89
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

39
Risk · 0-100
STRONG39 / 100

Blo presents moderate-to-caution risk due to missing profitability disclosure, moderate growth rate, and high capital requirements relative to revenue visibility.

Score breakdown · what drove the 39 / 100 rating

  1. 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability claims against $378K average revenue
  2. 02MINOR12.4% YoY unit growth is modest for a service-based concept; mature brands typically show 15-25%+ growth or stable mature performance
  3. 03MEDHigh initial investment ($308.5K-$402.6K) relative to disclosed average revenue ($378K) creates thin margin for error and extended payback period
  4. 04MED6% royalty + undisclosed marketing fund obligations could significantly reduce net margins below break-even in early years
  5. 05HIGHNo litigation disclosed is positive but absence of franchisee profitability data limits ability to assess dispute potential

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius/Blocks
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
39 hrs
On-the-job training
40 hrs
POS system
Booker
Operating tech stack

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

100 numbers

Locked
(425) 948-••••
WA
(919) 355-••••
NC
(469) 607-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Blo Blow Dry Bar · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above