Hair SaloonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hair Saloon franchise requires a total initial investment of $298K – $439K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $539K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $298K – $439K
- 29th pct Personal Care…
- Avg gross sales
- $539K
- 15th pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 15
- 18th pct Personal Care…
- SBA default
- 25.0%
- 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
Franchising since 2001. Systems this mature have refined operations and brand recognition.
The system contracted 15% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $298K – $439K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $539K/year (median $497K).
- Verdict F (Bottom Quintile) with a risk score of 95/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hair Saloon Franchise Company
- Parent company
- Hair Saloon Holdings, Inc.
- CEO title
- President and CEO
- Thomas H. Twellman, Jr.
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 1846 Craig Park Court, St. Louis, Missouri 63146
- Auditor
- Kiefer Bonfanti & Co. LLP
- Audited financials
- Franchisor revenue
- $462K
- vs $469K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Hair Saloon franchisees operate full-service hair salons providing cuts, coloring, styling, and hair treatment services. Daily operations involve managing stylists/staff, maintaining salon facilities, handling customer appointments and payments, and executing the franchisor's operational systems. Franchisees are responsible for local marketing, customer retention, and meeting revenue targets to support the 6% royalty obligation.
- CEO
- Thomas H. Twellman, Jr.
- Headquarters
- MO
- Founded
- 1996
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Lease Depositnot refundable | $3K | $6K | |
| Leasehold Improvements, Fixturesnot refundable | $125K | $190K | |
| Equipment and Furniture (including Computer Equipment)not refundable | $55K | $85K | |
| Opening Advertisingnot refundable | $30K | $30K | |
| Travel and Living Expenses while Attending Trainingnot refundable | $2K | $4K | |
| Start-up Supplies (Retail, Station, Uniform)not refundable | $12K | $16K | |
| Insurancenot refundable | $2K | $4K | |
| Professional Feesnot refundable | $2K | $6K | |
| Miscellaneous Opening Costsnot refundable | $3K | $5K | |
| Additional Funds - 6 monthsnot refundable | $30K | $60K | |
| Total initial investment | $298K | $439K |
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
$119K
22.0% margin
Unlevered ROIC
29%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $439K
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Better than avg vs category
- Franchise fee
- $10K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1 |
| Transfer fee | $9K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $539K
- Per unit, per year
- Median gross sales
- $497K
- Item 19 type
- gross_sales
- Sample size
- 15 units
- vs category median 35 · small
- Range (low → high)
- $275K→$987K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Hair Saloon Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 15
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.3%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 73%
- vs corporate-owned
- Multi-unit owners
- 33.3%
- Net growth (yr3)
- -15.4%
- Net unit change last year
- 3-yr CAGR
- -15.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 84.6%
- Units that stayed open
- Ceased ops
- 13.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
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
- $2.3M
- Median loan
- $340K
- 50th percentile
- Charge-off rate
- 25.0%
- 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)
- 66.7%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hair Saloon's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting franchise system with undisclosed profitability, franchisor financial concerns, and high investment requirements relative to system strength creates substantial risk of franchisee capital loss.
Litigation (Item 3)
No litigation is required to be disclosed in this disclosure document.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kiefer Bonfanti & Co. LLP
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 95 / 100 rating
- 01MEDUnit count declined 15.4% YoY (from ~18 to 15 units) — indicates system contraction and potential franchisee dissatisfaction
- 02HIGHGoing Concern = False suggests franchisor financial instability or operational distress
- 03MEDNet Income not disclosed — inability to validate profitability claims; franchisees cannot assess realistic ROI on $297.5K-$439K investment
- 04MEDHigh investment range ($297.5K-$439K) combined with 6% royalties creates significant breakeven pressure without disclosed profit margins
- 05MINORSmall franchise system (15 units) with declining trajectory reduces support infrastructure, marketing leverage, and brand momentum
- 06MEDFranchise fee ($35K) appears modest, but total cost burden is substantial relative to undisclosed net income and shrinking system viability
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 | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 0.5 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 2 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Missouri |
| Jury trial waiver | Yes |
| Governing law | Missouri |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this disclosure document.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 106 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 5 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
28 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hair Saloon · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hair Saloon franchise?
The total investment to open a Hair Saloon franchise ranges from $298K – $439K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hair Saloon franchise owners earn?
According to Item 19 of the Hair Saloon FDD, the average gross sales per unit is $539K. The median is $497K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hair Saloon's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hair Saloon (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 Hair Saloon franchise locations are there?
As of their most recent FDD filing, Hair Saloon has 15 total units in the United States, including 11 franchised units and 4 company-owned units.
Is Hair Saloon a good franchise to buy?
FranchiseVerdict rates Hair Saloon as a F-grade franchise with a risk score of 95 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.