Dakota LondonFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A DAKOTA LONDON franchise requires a total initial investment of $372K – $523K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $372K – $523K
- 35th pct Personal Care…
- Avg gross sales
- $1.2M
- 31st pct Personal Care…
- Royalty
- 7.0%
- 28th pct Personal Care…
- Units
- 3
- 9th pct Personal Care…
- SBA default
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
59% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $372K – $523K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.2M/year, with an estimated 59% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 45/100.
- Emerging franchise: only 2 years of franchising with 3 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- DKL Franchising, LLC
- Parent company
- AZ Strands, LLC
- Incorporated in
- AZ
- HQ
- 6590 N. Scottsdale Rd., Unit 130, Paradise Valley, Arizona 85253
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Dakota London franchisees operate fashion or lifestyle retail locations, likely focused on apparel, accessories, or home goods sales. Day-to-day activities typically include inventory management, customer service, visual merchandising, staff supervision, and local marketing to drive sales toward the $1.1M annual revenue benchmark.
- CEO
- Scott Cotten
- Headquarters
- AZ
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $70K |
| Equipment, build-out, other | $273K | $404K |
| Total initial investment | $372K | $523K |
Source: DAKOTA LONDON 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$244K
21.0% margin
Unlevered ROIC
48%
EBITDA / total invested capital
Payback
25 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $372K – $523K
- Better than avg vs category
- Liquid capital req'd
- $50K – $70K
- Near category avg vs category
- Franchise fee
- $30K – $50K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 1.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $750 |
| Transfer fee | $3K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $262K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 58.5%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Company-owned
- Sample size
- 3 units
- vs category median 35 · small
- Range (low → high)
- $873K→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Dakota London Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Dakota London presents HIGH RISK due to going concern status, minimal unit base, lack of financial substantiation, and questionable unit economics that may not support the claimed profitability.
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 45 / 100 rating
- 01HIGHGoing Concern status indicates the franchisor may have solvency or operational viability issues
- 02MINOROnly 3 units in system with unknown growth trajectory suggests stagnation or failure to scale
- 03MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate $261,963 avg net income claim
- 04MINORHigh initial investment ($372k-$523k) relative to only 3 franchise locations indicates unproven model
- 05MINOR7% royalty on $1.1M avg revenue = $77.5k annually, representing 30% of claimed net income — sustainability unclear
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 37 hrs
- POS system
- Mango Mint
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mango Mint
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DAKOTA LONDON · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DAKOTA LONDON franchise?
The total investment to open a DAKOTA LONDON franchise ranges from $372K – $523K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DAKOTA LONDON franchise owners earn?
According to Item 19 of the DAKOTA LONDON FDD, the average gross sales per unit is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is DAKOTA LONDON's franchise failure rate?
SBA 7(a) loan charge-off data is not available for DAKOTA LONDON (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many DAKOTA LONDON franchise locations are there?
As of their most recent FDD filing, DAKOTA LONDON has 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is DAKOTA LONDON a good franchise to buy?
FranchiseVerdict rates DAKOTA LONDON as a A-grade franchise with a risk score of 45 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.