FranchiseVerdict
HairClub logo
FV-01140·Excellent86FDD 2022

HairClub

Personal Services - Beauty & SalonFranchising since 1996Website
Investment
$492K – $1.5M
83rd pct Beauty & Salon
Avg revenue
$2.1M
67th pct Beauty & Salon
Royalty
6.0%
18th pct Beauty & Salon
Units
104
70th pct Beauty & Salon
SBA default

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).
  • Insufficient data to generate a risk assessment.
  • No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.

Item 1 · who you're contracting with

The Franchisor

Legal entity
HCM Industries, Inc.
Parent company
Aderans America Holdings, Inc.
Incorporated in
Florida
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

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 HairClub unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $2,101,837
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $492K–$1.5M
Working capital
$
FDD reports $100K–$350K

Unlevered ROIC · per unit

36%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$441K
EBITDA margin
21.0%
Total invested
$1.2M
Payback
33 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 HairClub units return on equity?

Edit assumptions

Equity IRR · 5-yr

25.9%

3.17× MOIC

Year-1 DSCR

3.20×

EBITDA ÷ debt service

Equity required

$15.6M

on $29.4M purchase

Total debt

$13.8M

SBA $5.0M + senior + seller note

SBA 7(a) request ($14.7M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

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
Founded
1996
FDD year
2022
States available
11

Item 7 · what it costs

The Vitals

Total investment
$492K – $1.5M
All-in to open one unit
Liquid capital
$100K – $350K
Cash you must have on hand
Franchise fee
$38K
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

Item 19

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 34 · large
Range (low → high)
$887K$4.2M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank67th
vs Personal Services - Beauty & Salon peers
Investment cost rank83th
Lower investment ranks lower (better)
Royalty rate rank18th
Lower royalty = lower percentile (better)
Unit count rank70th
vs Personal Services - Beauty & Salon peers
Risk score rank100th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
104
Opened
0
Last reporting year
Closed
0
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
2020
21-1
Franchised units
2021
22
Franchised units
2022
22
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

Risk · 0-100

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Specific approved location
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Florida

Item 11

Training & Operations

Classroom training
240 hrs
On-the-job training
232 hrs
POS system
Salesforce
Operating tech stack

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

21 numbers

Locked
(561) 361-••••
FL
FL
(808) 586-••••
Honolulu,
HI
(608) 266-••••
WI

One-time purchase · CSV download · Validation questions included

FDD download

HairClub · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above

Includes AI-generated validation questions · CSV download