Knockout Beauty Franchise Cost, Revenue & Review 2026
- Investment
- $181K – $438K
- Disclosed sales
- $383K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Knockout Beauty is a beauty retail franchise selling curated, science-backed skincare and beauty products with expert guidance. Franchisees run the stores, managing inventory, consultations, and sales.
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 $383K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2024 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
- $181K – $438K
- 18th pct Personal Care…
- Avg gross sales
- $383K
- 1 outlet
- Royalty
- 8.0%
- 51st pct Personal Care…
- Units
- 5
- 13th 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 $181K – $438K including a $45K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $383K/year.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed); 1 signed but not yet open (Item 20).
- FLAGRevenue data based on only 1 outlet. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Knockout Beauty Retail Group, LLC
- Parent company
- Knockout Beauty By Knocking On Forty, LLC (KB BY KO40) - affiliate, not parent
- CEO title
- Owner and Founder
- Cayli Cavaco Reck
- Incorporated in
- DE
- HQ
- 11724 Barrington Court, Los Angeles, CA 90049
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $96K
- vs $64K prior year
Overview
About
- CEO
- Cayli Cavaco Reck
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2024
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 23% below the typical personal care & beauty franchise.
Source: FDD 2024 · Items 5–7
The filing's Item 7 TOTAL row prints $181,200 to $438,300. Its own line items add to $188,200 to $438,300. The total is shown as the franchisor printed it; the lines are listed as printed. Filing's arithmetic: the 18 printed lines sum to $188,200 / $438,300 while the printed Total Estimated Initial Investment is $181,200 - $438,300.
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| Initial Inventory | $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 permits | $1K | $2K | |
| Professional Fees | $2K | $15K | |
| Architectural Review Fee | $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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $181K – $438K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $18K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 8.0%
- 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% |
| Technology fee | $200 |
| Transfer fee | $50 |
| Renewal fee | $20K |
| Inventory (initial) | $80K – $160K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 27% below the personal care & beauty norm.
Based on a single outlet - not a system average
Source: FDD 2024 · 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 Knockout Beauty 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 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
$320K
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 Knockout Beauty 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 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 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: 2024 FDD
Financial Performance
Based on a single outlet - not a system average
- Avg gross sales
- $383K
- 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
- gross sales by outlet
- Sample size
- 1 outlet
- vs category median 38 · small
- Reported figure
- $383KCited, not corroborated — printed on page 58 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- A single outlet — not a range
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
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 $383K/year in gross sales. Revenue-to-investment ratio: 1.2x.
Fee burden
Total ongoing fee load of 11.0% — above the Personal Care & Beauty median of 7.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 1 outlet — treat as directional only.
Operator retention
Net unit growth of +100.0% over 3 years (1 opened, 0 closed).
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
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 Knockout Beauty 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 40%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 1
- 0.20 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
- 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)
Where the owners are · Item 20 owner list
2 current owners across 2 states.
- CO 1
- NY 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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.
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
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
FY2023 Total Revenues $96,350 = Royalty revenue $79,506 + Franchise fee revenue $15,176 + Brand fund revenue $1,468 + Other revenues $200. Franchisor-level (Knockout Beauty Retail Group, LLC) audited figures, not unit-level sales.
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINOROnly 5 units in system with 100% YoY growth — extremely small franchise base makes financial projections unreliable and indicates early-stage/unproven model
- 02MEDHigh investment range ($181K-$438K) against undisclosed profitability creates significant risk of negative cash flow or extended breakeven periods
- 03MINOR8% royalty on gross sales is aggressive when net profitability is unknown — could consume 20-40%+ of actual net profit if margins are thin
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles, California |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- Training location
- Over Zoom / Los Angeles, CA or other designated location
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- 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
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 $383K. Important context: Based on a single outlet - not a system average. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Knockout Beauty?
Knockout Beauty is franchised by Knockout Beauty Retail Group, LLC. Its parent company is Knockout Beauty By Knocking On Forty, LLC (KB BY KO40) - affiliate, not parent. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Knockout Beauty 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 Knockout Beauty FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 56 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
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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.