Knockout Beauty
Bottom line
- Total investment $181K – $438K including a $45K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $689K/year (median $669K).
- Rated MODERATE with a risk score of 63/100.
Item 1 · who you're contracting with
The Franchisor
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 Knockout Beauty unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Knockout Beauty units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.3M purchase
Total debt
$6.6M
SBA $4.1M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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 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
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.
Score breakdown · what drove the 63 / 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
Item 11
Training & Operations
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
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Knockout Beauty · FDD (2024) PDF