Diesel Barbershop
Bottom line
- Total investment $361K – $503K including a $45K franchise fee, 7.5% ongoing royalty.
- Average unit revenue of $422K/year.
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 17 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
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 Diesel Barbershop unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Diesel Barbershop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.1M purchase
Total debt
$4.9M
SBA $3.1M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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).
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.
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.
Score breakdown · what drove the 41 / 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
Item 11
Training & Operations
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
35 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Diesel Barbershop · FDD (2025) PDF