Hammer & NailsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hammer & Nails franchise requires a total initial investment of $694K – $944K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $929K[2]. SBA 7(a) loans show a 4.0% charge-off rate across 50 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $694K – $944K
- 45th pct Personal Care…
- Avg gross sales
- $929K
- 26th pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 59
- 30th pct Personal Care…
- SBA default
- 4.0%
- 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
The system grew 37% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
15% cash-on-cash return (based on EBITDA). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $694K – $944K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $929K/year (median $862K), with an estimated 15% cash-on-cash return (based on EBITDA).
- Verdict D (Below Average) with a risk score of 77/100. SBA loan charge-off rate of 4.0% across 50 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Hammer & Nails Salon Group, LLC
- Predecessor
- and Affiliates
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Aaron Meyers
- Incorporated in
- CA
- HQ
- 101 Parkshore Drive, Suite 100, Folsom, California 95630
- Auditor
- Velez & Hardy, LLC
- Audited financials
- Franchisor revenue
- $4.0M
- vs $5.3M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate grooming service centers offering men's haircuts, shaves, manicures, and pedicures in a barber-shop-meets-nail-salon format. Day-to-day operations include managing 5-15 service professionals, maintaining appointment schedules, inventory management (grooming products), and customer relationship building in a service-intensive retail environment.
- CEO
- Aaron Meyers
- Headquarters
- CA
- Founded
- 2015
- FDD year
- 2026
- States available
- 17
FDD Item 7 · 2026 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Construction and Leasehold Improvements | $278K | $383K | |
| Shop Site Plans and Designs | $10K | $22K | |
| Lease Deposits - Three Months | $24K | $36K | |
| Furniture, Fixtures and Equipment | $178K | $196K | |
| Signage | $10K | $13K | |
| Computer, Software and Point of Sale System | $3K | $5K | |
| Grand Opening Marketing | $23K | $30K | |
| Pre-Sales Member Acquisition | $9K | $18K | |
| Initial Inventory | $35K | $50K | |
| Utility Deposits | $7K | $14K | |
| Insurance Deposits - 12 Months | $2K | $8K | |
| Travel for Initial Training | $3K | $10K | |
| Professional Fees | $2K | $6K | |
| Licenses and Permits | $2K | $9K | |
| Liquor License Administrative Review Fee | $0 | $10K | |
| Additional Funds - Three Months | $50K | $75K | |
| Total initial investment | $694K | $944K |
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
$204K
22.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $694K – $944K
- Near category avg vs category
- Liquid capital req'd
- $50K – $75K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 6.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $750 |
| Training fee | $1K |
| Transfer fee | $17K |
| Renewal fee | $20K |
| Inventory (initial) | $35K – $50K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $929K
- Per unit, per year
- Median gross sales
- $862K
- Avg ebitda
- $123K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 15.1%
- Based on EBITDA / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 43 units
- vs category median 35
- Range (low → high)
- $307K→$2.1M
- Cohort dispersion (min → max)
- Quartile band
- $314K→$1.3M
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Hammer & Nails Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 17
- Last reporting year
- Closed
- 1
- Turnover rate
- 1.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +37.2%
- Net unit change last year
- 3-yr CAGR
- +90.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 16
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 27
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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.
Available to sell in · Item 12
- California
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 50
- Loan volume
- $23.0M
- Median loan
- $487K
- 50th percentile
- Charge-off rate
- 4.0%
- 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)
- 60.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 20
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hammer & Nails's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 10-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hammer & Nails presents moderate risk with strong growth momentum offset by high capital requirements, thin margins, and unvalidated franchisee profitability claims.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $350,000
Bankruptcy (Item 4)
Disclosed in last 7 years
bankruptcy protection under Chapter 7 of the U.S. Bankruptcy Code (U.S. Bankruptcy Court, Sacramento, CA, Case No. 17-21044) with his spouse, Sarah Shelton. The case was discharged on May 30, 2017, and terminated on June 2, 2017. The Shelton’s bankruptcy was personal in nature, and did not involve a
Audited financials (Item 21)
Yes · Velez & Hardy, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 77 / 100 rating
- 01MINORHigh initial investment ($694k-$944k) against modest net income ($123k avg) creates 5.6-7.6 year payback period without accounting for royalties
- 02MINORRapid unit growth (37.2% YoY) may indicate aggressive recruitment outpacing organic demand; sustainability unclear
- 03MEDNet margin of 13.3% is thin; 6% royalty represents 45% of net profit, leaving limited cushion for underperforming locations
- 04MEDNo Item 19 financial performance representations disclosed; actual franchisee earnings may vary significantly from averages
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 | 1.5 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 56 hrs
- Training location
- Remote online courses and on-site at Shop Location
- Field support
- 96 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Item 20 · call current owners
Franchisee Contacts
72 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hammer & Nails · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hammer & Nails franchise?
The total investment to open a Hammer & Nails franchise ranges from $694K – $944K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hammer & Nails franchise owners earn?
According to Item 19 of the Hammer & Nails FDD, the average gross sales per unit is $929K. The median is $862K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hammer & Nails's franchise failure rate?
Based on SBA 7(a) loan data, Hammer & Nails has a charge-off rate of 4.0% across 50 loans, meaning 4.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Hammer & Nails franchise locations are there?
As of their most recent FDD filing, Hammer & Nails has 59 total units in the United States, including 31 franchised units and 0 company-owned units. 17 new units were opened in the latest reporting year.
Is Hammer & Nails a good franchise to buy?
FranchiseVerdict rates Hammer & Nails as a D-grade franchise with a risk score of 77 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.