Knockout BeautyFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Knockout Beauty franchise requires a total initial investment of $181K – $438K, including a $45K franchise fee and an ongoing 8.0% royalty[2]. Per the 2024 FDD, average unit revenue was $689K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $181K – $438K
- 16th pct Personal Care…
- Avg gross sales
- $689K
- 23rd pct Personal Care…
- Royalty
- 8.0%
- 32nd pct Personal Care…
- Units
- 5
- 12th 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
Franchised units fell from 2 to 1 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $181K – $438K including a $45K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $689K/year (median $669K).
- Verdict A (Top Quintile) with a risk score of 53/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Knockout Beauty Retail Group, LLC
- Incorporated in
- DE
- HQ
- 11724 Barrington Court, Los Angeles, CA 90049
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $64K
- vs $96K prior year
Overview
About
Knockout Beauty franchisees operate beauty/cosmetics retail or services locations, likely focused on direct-to-consumer sales of beauty products or services (salon, cosmetics counter, or beauty supply hybrid model). Daily operations typically include customer service, inventory management, product demonstrations, and sales transactions.
- CEO
- Cayli Cavaco Reck
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Initial Inventorynot refundable | $80K | $160K | |
| Real Estate; Prepaid Rent and Security Deposit | $8K | $40K | |
| Leasehold improvements | $15K | $45K | |
| Signage | $2K | $8K | |
| Furniture and Fixtures | $10K | $30K | |
| Architectural Plans and Design | $2K | $7K | |
| Computer System | $1K | $6K | |
| Equipment | $9K | $25K | |
| Laundry | $3K | $4K | |
| Insurance Deposits and Premiums | $2K | $2K | |
| Grand Opening Advertising | $0 | $10K | |
| Licenses and permitsnot refundable | $1K | $2K | |
| Professional Fees | $2K | $15K | |
| Architectural Review Feenot refundable | $0 | $5K | |
| Travel and Expenses While Training | $3K | $10K | |
| Pre-Opening Costs | $3K | $6K | |
| Additional Funds (3 Months) | $3K | $18K | |
| Total initial investment | $188K | $438K |
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
$131K
19.0% margin
Unlevered ROIC
41%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $181K – $438K
- Better than avg vs category
- Liquid capital req'd
- $3K – $18K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $50 |
| Renewal fee | $25K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $689K
- Per unit, per year
- Median gross sales
- $669K
- Item 19 type
- Historical
- Sample size
- 3 units
- vs category median 35 · small
- Range (low → high)
- $383K→$1.0M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Knockout Beauty Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 40%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (yr3)
- +100.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 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.
3
states with franchisees (per FDD Item 12)
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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Knockout Beauty presents caution-level risk: a micro-franchise system with unproven unit economics, no net income transparency, early-stage scale concerns, and undisclosed franchisor financial health.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 53 / 100 rating
- 01MINORNo net income disclosure despite $689K average revenue — unable to verify profitability claims or validate ROI
- 02MINOROnly 5 units in system with 100% YoY growth — extremely small franchise base makes financial projections unreliable and indicates early-stage/unproven model
- 03MEDHigh investment range ($181K-$438K) against undisclosed profitability creates significant risk of negative cash flow or extended breakeven periods
- 04MINOR8% royalty on gross sales is aggressive when net profitability is unknown — could consume 20-40%+ of actual net profit if margins are thin
- 05HIGHGoing Concern flagged as False — suggests financial instability or operational concerns at franchisor level
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 82 hrs
- On-the-job training
- 0 hrs
- Training location
- Over Zoom, Los Angeles CA, New York NY, or other designated locations
- Ongoing training
- Required
- POS system
- Shopify
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Shopify
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Knockout Beauty · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Knockout Beauty franchise?
The total investment to open a Knockout Beauty franchise ranges from $181K – $438K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Knockout Beauty franchise owners earn?
According to Item 19 of the Knockout Beauty FDD, the average gross sales per unit is $689K. The median is $669K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Knockout Beauty's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Knockout Beauty (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 Knockout Beauty franchise locations are there?
As of their most recent FDD filing, Knockout Beauty has 5 total units in the United States, including 2 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Knockout Beauty a good franchise to buy?
FranchiseVerdict rates Knockout Beauty as a A-grade franchise with a risk score of 53 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
Are you the franchisor?
If you represent Knockout Beauty, you can request corrections or provide updated information.
Claim this brandOther Personal Care & Beauty franchises
Compare similar franchise opportunities in the Personal Care & Beauty category
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.