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Dakota London Franchise Cost, Revenue & Review 2026

Personal Care & BeautyAZFranchising since 2024
CAverageAverage38/100Editorial grade from public filings; not investment advice.
Investment
$372K – $523K
Disclosed sales
partial, no system average
SBA charge-off
Not SBA-matched

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-00704FDD 2025Data QualityExcellent81%
Manager-run OKYes: Exclusive territory

Data from FDD filing

Analysis by FranchiseVerdict Research · Methodology

Dakota London is a beauty franchise operating luxury hair extension salons with premium hair and expert stylists. Franchisees run the salons, managing stylists, appointments, and retail.

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]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →

Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 6 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.

Overview

Investment
$372K – $523K
41st pct Personal Care…
Avg gross sales
N/A
Company-owned only
Royalty
7.0%
45th pct Personal Care…
Units
3
9th pct Personal Care…
SBA charge-off
N/A

Quick verdict · Personal Care & Beauty · color = vs category peers

Total Investment
$372K – $523K
Median $402K
above median ↑, worse than category
Franchise Fee
$50K – $50K
Median $45K
above median ↑, worse than category
Liquid Capital Req'd
$50K – $70K
Median $34K
above median ↑, worse than category
Avg Revenue
Partial, no system average
No system average in Item 19
Royalty Rate
7.0%
Median 6.0%
above median ↑, worse than category
Ongoing Fees
9.0% of rev
Median 7.9%
above median ↑, worse than category
SBA Charge-Off Rate
Not SBA-matched
Not matched to SBA 7(a) loans
System Size
3 units
Median 40 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.8%
below median ↓, better than category
Territory
Exclusive
No other outlet of the brand may open inside it
Owner-Operator
Optional
Can hire a manager
Litigation
None disclosed
Clean record

Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $372K – $523K including a $50K franchise fee, 7.0% ongoing royalty.
  • RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
  • RISKVerdict C (Average), verdict score 38/100 (higher is better).
  • GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
  • DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
DKL Franchising, LLC
Parent company
AZ Strands, LLC
Predecessor
AZ Strands (first salon opened 2011)
Prior franchisor entity
CEO title
Co-Founder & Chief Executive Officer
Scott Cotten
Incorporated in
AZ
HQ
6590 N. Scottsdale Rd., Unit 130, Paradise Valley, Arizona 85253
Auditor
Metwally CPA PLLC
Audited financials

Overview

About

CEO
Scott Cotten
Headquarters
AZ
Founded
2024
FDD year
2025
States available
1

Can you afford it, and what does the money buy?

Entry cost runs 11% above the typical personal care & beauty franchise.

Total investment (Item 7)$372K – $523KCited, not corroborated — printed on page 15 of the 2025 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$49,500Verified — printed on page 10 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty7.0%Cited, not corroborated — printed on page 11 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund0.0%Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Working capital$50K – $70K

Source: FDD 2025 · Items 5–7

FDD Item 7 · 2025 filing

Initial investment breakdown

DAKOTA LONDON: Item 7 initial investment breakdown
Cost componentLowHigh
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.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$372K – $523K
Middle of category vs category
Liquid capital req'd
$50K – $70K
Middle of category vs category
Franchise fee
$50K – $50K
Top 40% of category vs category
Royalty
7.0%
typical 6–8%
Ad fund
0.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Ongoing fees · Item 6

DAKOTA LONDON: Item 6 recurring fees
FeeAmount
Royalty7.0% of gross sales
Marketing / ad fund0.0%
Technology fee$488
Transfer fee$3K
Renewal fee$10K
Inventory (initial)$120K – $130K
Total fee load9.0% of rev

What do units actually make?

Avg gross salesNot extracted
Median gross salesNot extracted
Item 19 typecompany owned only
Sample size3

Source: FDD 2025 · Item 19

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

No Item 19 revenue figure for DAKOTA LONDON is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.

Returns model · single-unit ROIC

What would one DAKOTA LONDON unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $372K–$523K (midpoint used)
FDD reports $50K–$70K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$508K
Payback
—
Single-unit 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 point.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2025 FDD

Financial Performance

Company-owned outlets only - not franchisee performance

Item 19 type
company owned only
Sample size
3
vs category median 38 · small
Range (low → high)
$873K→$1.4MCited, not corroborated — printed on page 40 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Reporting year
2024
Fiscal year the figures cover
Source filing
FDD 2025
Disclosed in the 2025 filing, covering 2024
Transparency
6 / 10
vs category median 4 / 10 · above
Gross sales rank
No comparison data
Investment cost rank41th
Lower investment ranks lower (better)
Royalty rate rank45th
Lower royalty = lower percentile (better)
Unit count rank9th
vs Personal Care & Beauty peers
Risk score rank84th
Lower risk = lower percentile (better)

Compared against 177 Personal Care & Beauty brands

Showing the headline figures — all 139 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Fee burden

Total ongoing fee load of 9.0% (near the Personal Care & Beauty median).

Disclosure

Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Personal Care & Beauty medians

How Dakota London Compares

Metric
Dakota London
Category median
vs median
Investment
$448K
$402Kmiddle half $261K–$677K · n=112
Above median, worse than category
Revenue
N/A
$527Kmiddle half $402K–$892K · n=59
N/A
Unit Count
3
40middle half 8–151 · n=111
Below median, worse than category

Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units3Verified — printed on page 42 of the 2025 FDD (Item 20), and the table's own arithmetic closes on it two ways.

Source: FDD 2025 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
3
Opened
0
Last reporting year
Closed
0
Turnover rate
N/A
Company-owned
3
Corporate units in the system
% franchised
0%
vs corporate-owned

Last fiscal year · Item 20 exits and transfers

Signed, not yet open
0
0.00 per open outlet · Item 20 Table 5
Projected new
0
Franchisor's next-year forecast
2022
0
Franchised units
2023
0±0
Franchised units
2024
0±0
Franchised units

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

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

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.

What could kill this investment?

SBA charge-offNot SBA-matched
Verdict score38/100 (higher is better)
Litigation0 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

CAverage38Verdict score 38/100
Moderate confidence±13 pts
2551

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Metwally CPA PLLC

Franchisor revenue (Item 21)

Franchisor entity revenue (not unit-level)

Item 21 audited financial statements of DKL Franchising, LLC (FYE Dec 31, 2024) are in Exhibit H, which the OCR text renders as blank image-only pages (lines 8413-8508). No franchisor balance-sheet, income, or revenue figures, nor the CPA firm name, are recoverable from the text. Franchisor was formed Nov 26, 2024 and has not been in existence 3 years.

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: Yes
  • Kickbacks from required suppliers: No
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes

Score breakdown · what drove the 38 / 100 verdict

  1. 01MINOROnly 3 units in system with unknown growth trajectory suggests stagnation or failure to scale
  2. 02MINORHigh initial investment ($372k-$523k) relative to only 3 franchise locations indicates unproven model
  3. 03MINOR7% 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

Showing the headline figures — all 139 extracted fields are in the Full FDD Report · $19 →

What are you signing up for?

Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term5 yrs
TerritoryExclusive (favorable vs category)
Initial training80 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term5 years
Allowed renewalsℹ4
Territory typeExclusive territory
Protected territoryYes
Exclusive territoryℹYes
Territory population100,000
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ15 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice30 days
Mandatory arbitrationNo
Arbitration locationMaricopa County, Arizona
Jury trial waiverYes
Governing lawAZ
Litigation count0

Items 10, 11

Training & Operations

Classroom training
43 hrs
On-the-job training
37 hrs
Training location
Phoenix, AZ (corporate HQ and company-owned salon) for Phase 2; virtual for Phase 1; franchisee's Salon for Onsite Training
Ongoing training
Required
Time to open
9 mo
From signing to launch
Site selection
Franchisee with franchisor approval
Franchisor financing
Not offered
Item 10
POS system
Mango Mint
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Mango Mint

Item 20 · call current owners

Franchisee Contacts

1 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 1 contacts · $49
Free preview
(480) 300-••••

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?

Item 19 of the DAKOTA LONDON FDD discloses outlet figures from $873K to $1.4M but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Who owns DAKOTA LONDON?

DAKOTA LONDON is franchised by DKL Franchising, LLC. Its parent company is AZ Strands, LLC. Source: FDD Item 1, 2025 filing.

What is Item 19 in the DAKOTA LONDON FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the DAKOTA LONDON FDD and qualifies whose outlets they describe.

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.

Is DAKOTA LONDON a good franchise to buy?

FranchiseVerdict rates DAKOTA LONDON as a C-grade franchise with a verdict score of 38 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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

Are you the franchisor?

If you represent DAKOTA LONDON, you can request corrections or provide updated information.

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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.