HairClub Franchise Cost, Revenue & Review 2026
- Investment
- $492K – $1.5M
- Disclosed sales
- $2.1M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HairClub is a personal-care franchise providing hair-loss solutions, hair-regrowth treatments, non-surgical replacement, and transplants, plus haircare products. Franchisees run centers managing consultations, treatments, and specialists.
FranchiseVerdict summary · 2026
A HairClub franchise requires a total initial investment of $492K – $1.5M, including a $25K – $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2022 FDD, average unit revenue was $2.1M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2022 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $492K – $1.5M
- 49th pct Personal Care…
- Avg gross sales
- $2.1M
- Net sales31st pct Personal Care…
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 104
- 41st pct Personal Care…
- SBA charge-off
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $492K – $1.5M including a $25K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.1M/year (median $1.9M).
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed); 1 signed but not yet open (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HCM Industries, Inc.
- Parent company
- Aderans America Holdings, Inc.
- FDD Item 1, page 6 of the 2022 FDD
- Ultimate parent
- Aderans Co. Ltd.
- FDD Item 1, page 6 of the 2022 FDD
- CEO title
- President and Chief Executive Officer
- Mike Nassar
- Incorporated in
- FL
- HQ
- 1499 West Palmetto Park Road, Suite 300, Boca Raton, Florida 33486
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $323.1M
- vs $287.5M prior year
Overview
About
- CEO
- Mike Nassar
- Headquarters
- FL
- Founded
- 1996
- FDD year
- 2022
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 150% above the typical personal care & beauty franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown16 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $492K – $1.5M
- Middle of category vs category
- Liquid capital req'd
- $100K – $350K
- Middle of category vs category
- Franchise fee
- $25K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 | $200 |
| Training fee | $6K |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Inventory (initial) | $15K – $20K |
| 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.
What do units actually make?
Average unit sales run 299% above the personal care & beauty norm.
Reported as net sales, not gross sales
Source: FDD 2022 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for HairClub until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.2M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one HairClub unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $1.9M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 21 outlets
- vs category median 38
- Range (low → high)
- $887K→$4.2MCited, not corroborated — printed on page 52 of the 2022 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 177 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.1M/year in gross sales. Revenue-to-investment ratio: 2.1x.
Fee burden
Total ongoing fee load of 6.0% — below the Personal Care & Beauty median of 7.9%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -4.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty medians
How HairClub Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 104
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.0%
- Company-owned
- 83
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
- Net growth (3-yr)
- -4.5%
- Net unit change over 3 years
- 3-yr CAGR
- -4.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 1
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- 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 · 3 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.
Where the owners are · Item 20 owner list
4 current owners across 3 states.
- CA 2
- FL 1
- PA 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three concluded matters: FTC v. Bosley (antitrust consent agreement 2013); Allan Hair Restoration franchisee lawsuit settled 2014; Paterson's Preferred Properties real estate commission suit against Frank DeCarlo settled 2021.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Affiliate Aderans France SAS filed declaration of cessation of payments and receivership in Paris Commercial Court on January 27, 2022 (Reference No. 2022005891). Matter pending as of FDD date.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Chart 1 (April 2022 FDD): 2021 Average Total Revenue of all 21 U.S. franchised Centers open the full year - avg $2,101,837, median $1,929,961, range $887,094-$4,154,114, 8 (38%) at/above average; recurring-membership revenue is 82% of total. FRANCHISED ONLY: the 83 company-owned Corporate Centers are disclosed separately (2021 avg $1,692,182) and offer a wider service range. All franchised Centers have operated 15+ years; 4 are joint ventures. Total Revenue = all Gross Revenue less refunds. Franchisor financial statements are the consolidated statements of parent Aderans America Holdings.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| 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 |
| Arbitration location | Boca Raton, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 3 |
View Item 3 litigation summary
Three concluded matters: FTC v. Bosley (antitrust consent agreement 2013); Allan Hair Restoration franchisee lawsuit settled 2014; Paterson's Preferred Properties real estate commission suit against Frank DeCarlo settled 2021.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 32 hrs
- Training location
- Corporate Headquarters (Boca Raton, FL) or Designated Center
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Salesforce CRM + proprietary POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Salesforce CRM + proprietary POS
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $25K. 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. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns HairClub?
HairClub is franchised by HCM Industries, Inc.. Its parent company is Aderans America Holdings, Inc.. The ultimate parent named in the FDD is Aderans Co. Ltd.. Source: FDD Item 1, 2022 filing.
What is Item 19 in the HairClub FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the HairClub FDD and qualifies whose outlets they describe.
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 verdict score of 54 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent HairClub, you can request corrections or provide updated information.
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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.