Diesel Barbershop Franchise Cost, Revenue & Review 2026
- Investment
- $361K – $503K
- Disclosed sales
- $422K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (6)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Diesel Barbershop is a men's grooming franchise offering haircuts, shaves, and grooming in an industrial-themed shop. Franchisees run the shops, managing barbers, scheduling, and retail.
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
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 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $361K – $503K
- 40th pct Personal Care…
- Avg gross sales
- $422K
- 10th pct Personal Care…
- Royalty
- 7.5%
- 51st pct Personal Care…
- Units
- 31
- 28th pct Personal Care…
- SBA charge-off
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
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 $361K – $503K including a $45K franchise fee, 7.5% ongoing royalty.
- RETURNSAverage unit revenue of $422K/year.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHPositive: net +2 franchised outlets in the latest year (2 opened, 0 closed); 8 signed but not yet open (Item 20).
- GROWTHSystem growing at 17.4% CAGR over 3 years with 31 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Diesel Barbershop Franchising, LLC
- CEO title
- Chief Executive Officer
- Kelly Smentek
- Incorporated in
- TX
- HQ
- 11255 Hubner Road, Suite 104, San Antonio, Texas 78230
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $1.2M
- vs $1.5M prior year
Overview
About
- CEO
- Kelly Smentek
- Headquarters
- TX
- Founded
- 2017
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost is about typical for a personal care & beauty franchise (near the category median).
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $361K – $503K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $25K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 7.5%
- 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 | $0 |
| Inventory (initial) | $16K – $21K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 20% below the personal care & beauty norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Diesel Barbershop until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$457K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Diesel Barbershop unit return on the cash you put in?
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.
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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $422K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue by tier
- Sample size
- 26 outlets
- vs category median 38
- Range (low → high)
- $149K→$1.1MCited, not corroborated — printed on page 56 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
- 3 / 10
- vs category median 4 / 10 · below
Compared against 177 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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $422K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 8.5% (near the Personal Care & Beauty median).
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System expanding at 17.4% CAGR over 3 years across 31 units — operators are staying and new ones are joining.
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 Diesel Barbershop Compares
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?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 87%
- vs corporate-owned
- Net growth (3-yr)
- +17.4%
- Net unit change over 3 years
- 3-yr CAGR
- +17.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 8
- 0.26 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- Transfer rate
- 0.1%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
- Termination rate
- 0.1%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 11 states 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.
11
states with franchisees (per FDD Item 12)
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
- Under 10 loans (6)
- Insufficient SBA coverage: 6 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (6)
- 5-yr charge-off
- Under 10 loans (6)
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation must be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 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
- 03MINOR7.5% royalty on gross sales (not net) reduces profitability and increases franchisee vulnerability during revenue downturns
- 04MINORNo disclosure of franchisee failure rate, unit closures, or multi-unit performance data
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 75,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 0 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 15 |
| Mandatory arbitration | Yes |
| Arbitration location | San Antonio, Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation must be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 54 hrs
- Training location
- Franchisor headquarters/designated facility in San Antonio, TX; affiliate Barbershop; franchisee's Barbershop
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Unchained Systems (approved POS supplier)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Unchained Systems (approved POS supplier)
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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.
Who owns Diesel Barbershop?
Diesel Barbershop is franchised by Diesel Barbershop Franchising, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Diesel Barbershop 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 Diesel Barbershop FDD and qualifies whose outlets they describe.
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 27 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 B-grade franchise with a verdict score of 56 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?
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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.