Bottom line
- Total investment $391K – $1.1M including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $853K/year (median $754K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 56 loans (below the industry average).
- System growing at 24.5% CAGR over 3 years with 198 total units — strong expansion trajectory.
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 Drybar unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Drybar units return on equity?
Equity IRR · 5-yr
40.8%
5.53× MOIC
Year-1 DSCR
2.09×
EBITDA ÷ debt service
Equity required
$3.4M
on $11.9M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
Overview
About
Drybar franchisees operate blow-dry salons offering on-demand styling and hair care services to retail customers. Day-to-day operations include managing stylists, scheduling appointments, inventory of products/tools, and delivering consistent brand experience across a protected territory. Revenue is primarily service-based with ancillary product sales.
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 · 22 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
Drybar presents moderate-to-elevated risk due to missing profitability data, going concern status, and a cost structure that may compress franchisee margins despite solid top-line revenue.
Score breakdown · what drove the 44 / 100 rating
- 01MINORNo Item 19 (Net Income) disclosure limits visibility into actual profitability despite $852K avg revenue
- 02MINORWide investment range ($391K–$1.1M) suggests inconsistent unit economics or hidden costs
- 03HIGHGoing Concern = False indicates potential franchisor financial instability or restructuring
- 04MINOR12.5% YoY unit growth is modest for a lifestyle brand in expanding market; no disclosure of unit closures
- 05MINOR7% royalty on gross receipts (not net) is aggressive; leaves thin margins in service-based business
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
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Drybar · FDD (2026) PDF