Diesel BarbershopFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Diesel Barbershop franchise requires a total initial investment of $361K – $503K, including a $45K franchise fee and an ongoing 7.5% royalty[2]. Per the 2025 FDD, average unit revenue was $422K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $361K – $503K
- 34th pct Personal Care…
- Avg gross sales
- $422K
- 10th pct Personal Care…
- Royalty
- 7.5%
- 32nd pct Personal Care…
- Units
- 31
- 23rd pct Personal Care…
- SBA default
- 0.0%
- system-wide median varies by category
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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $361K – $503K including a $45K franchise fee, 7.5% ongoing royalty.
- Average unit revenue of $422K/year.
- Verdict A (Top Quintile) with a risk score of 31/100.
- Auditor disclosed a going-concern note, which 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
- Diesel Barbershop Franchising, LLC
- Incorporated in
- TX
- HQ
- 11255 Hubner Road, Suite 104, San Antonio, Texas 78230
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.2M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate a full-service barbershop offering haircuts, grooming, and related services. Day-to-day operations include staff scheduling, customer booking management, inventory control (products/supplies), and service delivery in a retail environment, typically requiring 40–50 weekly operating hours.
- CEO
- Kelly Smentek
- Headquarters
- TX
- Founded
- 2017
- FDD year
- 2025
- States available
- 9
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Technology Fees for the First 11 months from the Effective Date of the Franchise Agreementnot refundable | $3K | $3K | |
| Architectural Feesnot refundable | $9K | $10K | |
| Leasehold Improvementsnot refundable | $129K | $214K | |
| Security, Utility Deposits, Insurance, First Month's Rentnot refundable | $8K | $10K | |
| Equipment, FF&E and Signagenot refundable | $95K | $125K | |
| Computer System and AV Packagenot refundable | $20K | $37K | |
| POS System Fee for Three Monthsnot refundable | $750 | $750 | |
| Initial Barber Supplies and Inventorynot refundable | $16K | $21K | |
| Initial Marketing Spendnot refundable | $5K | $5K | |
| Legal Feesnot refundable | $3K | $3K | |
| Training Expenses, Travel and Living to attend Initial Training Programnot refundable | $2K | $4K | |
| Additional Funds - Three Monthsnot refundable | $25K | $25K | |
| Total initial investment | $361K | $503K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$91K
21.5% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $361K – $503K
- Better than avg vs category
- Liquid capital req'd
- $25K – $25K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 7.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $10 |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $422K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 26 units
- vs category median 35
- Range (low → high)
- $149K→$1.1M
- Cohort dispersion (min → max)
- Quartile band
- $209K→$697K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 186 Personal Care & Beauty brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Personal Care & Beauty averages
How Diesel Barbershop Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 87%
- vs corporate-owned
- Net growth (yr3)
- +8.0%
- Net unit change last year
- 3-yr CAGR
- +17.4%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 0.1%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
- Termination rate
- 0.1%
- Franchisor-initiated terminations
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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).
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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $1.9M
- Median loan
- $337K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Diesel Barbershop's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-cautious risk profile driven by undisclosed profitability metrics, high capital requirements relative to average revenue, and slow system growth in a competitive barbershop market.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 31 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to validate ROI claims or profitability benchmarks
- 02MINORSlow unit growth of 8.0% YoY suggests modest expansion and potential market saturation in mature barbershop sector
- 03MINORHigh initial investment ($360k–$503k) against average revenue of $422k creates tight margin for error in Year 1 and cash flow concerns
- 04MINOR7.5% royalty on gross sales (not net) reduces profitability and increases franchisee vulnerability during revenue downturns
- 05MINORNo disclosure of franchisee failure rate, unit closures, or multi-unit performance data
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 | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius and Population |
| Protected territory | Yes |
| Territory sizeℹ | 75,000 people |
| 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 |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 54 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Diesel Barbershop · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Diesel Barbershop franchise?
The total investment to open a Diesel Barbershop franchise ranges from $361K – $503K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Diesel Barbershop franchise owners earn?
According to Item 19 of the Diesel Barbershop FDD, the average gross sales per unit is $422K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Diesel Barbershop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Diesel Barbershop (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 Diesel Barbershop franchise locations are there?
As of their most recent FDD filing, Diesel Barbershop has 31 total units in the United States, including 5 franchised units and 4 company-owned units. 2 new units were opened in the latest reporting year.
Is Diesel Barbershop a good franchise to buy?
FranchiseVerdict rates Diesel Barbershop as a A-grade franchise with a risk score of 31 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.
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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.