IMAGE Studios Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
IMAGE Studios is a franchise that leases private, upscale salon suites to independent beauty professionals such as stylists, estheticians, and nail techs. Franchisees run the facility, earning rent and managing suites rather than providing salon services directly.
FranchiseVerdict summary · 2026
A IMAGE Studios franchise requires a total initial investment of $773K – $1.7M, including a $65K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $445K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $773K – $1.7M
- 58th pct Personal Care…
- Avg gross sales
- $445K
- Incl. company outlets9th pct Personal Care…
- Royalty
- 6.0%
- 10th pct Personal Care…
- Units
- 129
- 46th 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 avg · 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 $773K – $1.7M including a $65K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $445K/year (includes company-owned outlets).
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- GROWTHSystem growing at 86.8% CAGR over 3 years with 129 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Image Studios Franchise, LLC
- Parent company
- IMAGE Studios HOLDCO, LLC
- Predecessor
- IMAGE Studios 360 Franchise, LLC
- Prior franchisor entity
- CEO title
- Founder, Chief Executive Officer, and President
- Jason Olsen
- Incorporated in
- DE
- HQ
- 1370 South 2100 East, Salt Lake City, Utah 84108
- Auditor
- Bangerter, Lund & Associates
- Audited financials
- Franchisor revenue
- $7.0M
- vs $0 prior year
Affiliated brands
- IMAGE Studios
- IMAGE Studios Foothill
- IMAGE Studios Ogden
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jason Olsen
- Headquarters
- UT
- Founded
- 2024
- FDD year
- 2026
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost runs 139% above the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $35K | $75K |
| Equipment, build-out, other | $674K | $1.6M |
| Total initial investment | $773K | $1.7M |
Source: IMAGE Studios 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $773K – $1.7M
- Middle of category vs category
- Liquid capital req'd
- $35K – $75K
- Middle of category vs category
- Franchise fee
- $65K – $65K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $1K – $3K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 44% below the personal care & beauty norm.
Includes company-owned outlets
Source: FDD 2026 · Item 19
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
$98K
22.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
13.4 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one IMAGE Studios unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
7%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 IMAGE Studios units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.7M purchase
Total debt
$5.3M
SBA $3.3M + senior + seller note
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: 2026 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $445K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- revenue and earnings
- Sample size
- 82 outlets
- vs category median 38 · large
- Range (low → high)
- $167K→$862K
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 179 Personal Care & Beauty brands
Revenue is only 0.4x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $445K/year in gross sales. Revenue-to-investment ratio: 0.4x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 8.0% (near the Personal Care & Beauty average).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 86.8% CAGR over 3 years across 129 units — operators are staying and new ones are joining.
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 averages
How IMAGE Studios Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 129
- Opened
- 34
- 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
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +86.8%
- Net unit change over 3 years
- 3-yr CAGR
- +86.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 34
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 1
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 29 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
29
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
IMAGE Studios presents moderate-to-high risk due to lack of financial disclosure, rapid unit growth sustainability questions, and high capital requirements relative to disclosed average profitability.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $199,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bangerter, Lund & Associates
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 58 / 100 verdict
- 01MEDNo Item 19 financial performance representations disclosed — cannot independently verify claimed $145,909 average net income
- 02MINORAggressive unit growth of 35.1% YoY raises sustainability concerns; rapid expansion often precedes market saturation or quality degradation
- 03MINORDual royalty structure ($300/week minimum) creates unpredictable cash flow burden, especially in early ramp-up phases
- 04HIGHGoing Concern flag is FALSE but absence of explicit franchisor financial health disclosure is concerning given high franchisee investment
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Salt Lake City, Utah |
| Jury trial waiver | No |
| Governing law | UT |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 0 hrs
- Training location
- Online and Salt Lake City, Utah
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Property Management Software (CRM/accounting platform)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Property Management Software (CRM/accounting platform)
Item 20 · call current owners
Franchisee Contacts
120 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
IMAGE Studios · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a IMAGE Studios franchise?
The total investment to open a IMAGE Studios franchise ranges from $773K – $1.7M, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do IMAGE Studios franchise owners earn?
According to Item 19 of the IMAGE Studios FDD, the average gross sales per unit is $445K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the IMAGE Studios 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 IMAGE Studios FDD and qualifies whose outlets they describe.
What is IMAGE Studios's franchise failure rate?
SBA 7(a) loan charge-off data is not available for IMAGE Studios (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 IMAGE Studios franchise locations are there?
As of their most recent FDD filing, IMAGE Studios has 129 total units in the United States, including 127 franchised units and 2 company-owned units. 34 new units were opened in the latest reporting year.
Is IMAGE Studios a good franchise to buy?
FranchiseVerdict rates IMAGE Studios as a B-grade franchise with a verdict score of 58 out of 100 (higher is better), 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.