HairClubFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HairClub franchise requires a total initial investment of $492K – $1.5M, including a $38K franchise fee and an ongoing 6.0% royalty[2]. Per the 2022 FDD, average unit revenue was $2.1M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $492K – $1.5M
- 41st pct Personal Care…
- Avg gross sales
- $2.1M
- 32nd pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 104
- 35th pct Personal Care…
- SBA default
- N/A
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 1996. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $492K – $1.5M including a $38K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.1M/year (median $1.9M).
- Verdict B (Above Average) with a risk score of 56/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- HCM Industries, Inc.
- Parent company
- Aderans America Holdings, Inc.
- Incorporated in
- FL
- HQ
- 1499 West Palmetto Park Road, Suite 300, Boca Raton, Florida 33486
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $287.5M
- vs $323.1M prior year
Overview
About
A “HairClub” franchisee will operate a total hair care business in physical locations providing services that focus on hair regrowth, replacement, and restoration as well as proprietary and or specialized haircare products and accessories.
- CEO
- Mike Nassar
- Headquarters
- FL
- Founded
- 1996
- FDD year
- 2022
- States available
- 11
FDD Item 7 · 2022 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $50K | |
| Lease | $13K | $146K | |
| Utility Deposit | $150 | $250 | |
| Architect Fees | $10K | $50K | |
| Construction Costs | $260K | $750K | |
| Expenses for Initial Training | $6K | $12K | |
| Business Licenses and Permits | $250 | $500 | |
| Business Insurance | $5K | $13K | |
| Initial Inventory | $15K | $20K | |
| Computer Hardware & Software | $10K | $30K | |
| Initial Tech Feenot refundable | $5K | $5K | |
| Furniture, Fixtures, & Equipment | $20K | $50K | |
| Signage | $2K | $5K | |
| Grand Opening Marketing Program | $10K | $15K | |
| Professional Fees | $10K | $20K | |
| Additional Funds (3 months) | $100K | $350K | |
| Total initial investment | $492K | $1.5M |
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
$441K
21.0% margin
Unlevered ROIC
36%
EBITDA / total invested capital
Payback
33 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $492K – $1.5M
- Near category avg vs category
- Liquid capital req'd
- $100K – $350K
- Near category avg vs category
- Franchise fee
- $25K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- Franchisee’s proportionate share of The Marketing & Media…
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $5K |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $1.9M
- Item 19 type
- Average Total Revenue for Franchised and Company-Owned Outlets
- Sample size
- 104 units
- vs category median 35 · large
- Range (low → high)
- $887K→$4.2M
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How HairClub Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 104
- Opened
- 0
- 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
- 0.0%
- Company-owned
- 83
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
- Net growth (yr3)
- -4.5%
- Net unit change last year
- 3-yr CAGR
- -4.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 95.5%
- Units that stayed open
- Ceased ops
- 1.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $536K
- Median loan
- $536K
- average
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Litigation (Item 3)
FTC consent agreement (settled May 2013) regarding competitive information sharing; franchisee class action pending in Florida since March 2013 regarding territorial protection, royalty fees, and breaches of franchise agreements
Bankruptcy (Item 4)
Disclosed in last 7 years
Aderans France SAS filed declaration of cessation of payments on January 27, 2022 in Paris Commercial Court; receivership proceedings initiated February 22, 2022 and pending
Audited financials (Item 21)
Yes · Ernst & Young 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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Specific approved location |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 3 |
View Item 3 litigation summary
FTC consent agreement (settled May 2013) regarding competitive information sharing; franchisee class action pending in Florida since March 2013 regarding territorial protection, royalty fees, and breaches of franchise agreements
Items 10, 11
Training & Operations
- Classroom training
- 240 hrs
- On-the-job training
- 232 hrs
- Training location
- Franchisor location and on-site at franchisee's restaurant
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- POS system
- Salesforce
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Salesforce
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HairClub · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HairClub franchise?
The total investment to open a HairClub franchise ranges from $492K – $1.5M, with an initial franchise fee of $38K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HairClub franchise owners earn?
According to Item 19 of the HairClub FDD, the average gross sales per unit is $2.1M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is HairClub's franchise failure rate?
SBA 7(a) loan charge-off data is not available for HairClub (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 HairClub franchise locations are there?
As of their most recent FDD filing, HairClub has 104 total units in the United States, including 21 franchised units and 83 company-owned units.
Is HairClub a good franchise to buy?
FranchiseVerdict rates HairClub as a B-grade franchise with a risk score of 56 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.
For franchisors
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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.