Hair Saloon
Bottom line
- Total investment $298K – $439K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $539K/year (median $497K).
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
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 Hair Saloon unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hair Saloon units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.1M purchase
Total debt
$6.5M
SBA $4.0M + senior + seller note
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.
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 · 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 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
Contracting franchise system with undisclosed profitability, franchisor financial concerns, and high investment requirements relative to system strength creates substantial risk of franchisee capital loss.
Score breakdown · what drove the 72 / 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
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hair Saloon · FDD (2025) PDF