Skip to main content
FranchiseVerdict
Knockout Beauty logo

Knockout Beauty Franchise Cost, Revenue & Review 2026

Personal Care & BeautyCAFranchising since 2021
BAbove averageAbove average56/100Editorial grade from public filings; not investment advice.
Investment
$181K – $438K
Disclosed sales
$383K
gross sales, not profit
SBA charge-off
Not SBA-matched

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01423Data QualityExcellent86%FDD 2024 · 2yr old
Owner-operator requiredYes: Protected territory

Data from FDD filing

Analysis by FranchiseVerdict Research · Methodology

This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.

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

Total Investment
$181K – $438K
Median $402K
below median ↓, better than category
Franchise Fee
$45K – $45K
Median $45K
near median
Liquid Capital Req'd
$3K – $18K
Median $34K
below median ↓, better than category
Avg Revenue
$383K
Median $527K
below median ↓, worse than category
1 outlet
Royalty Rate
8.0%
Median 6.0%
above median ↑, worse than category
Ongoing Fees
11.0% of rev
Median 7.9%
above median ↑, worse than category
SBA Charge-Off Rate
Not SBA-matched
Not matched to SBA 7(a) loans
System Size
5 units
Median 40 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.8%
below median ↓, better than category
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Required
You must run it yourself
Litigation
None disclosed
Clean record

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.

Total investment (Item 7)$181K – $438KCited, not corroborated — printed on page 19 of the 2024 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$45,000Verified — printed on page 12 of the 2024 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty8.0%Cited, not corroborated — printed on page 13 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.0%Cited, not corroborated — printed on page 13 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$3K – $18K

Source: FDD 2024 · Items 5–7

Item 7 total vs its own lines

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

Item 7 initial investment line items
Line itemLowHigh
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

Knockout Beauty: Item 6 recurring fees
FeeAmount
Royalty8.0% of gross sales
Marketing / ad fund3.0%
Technology fee$200
Transfer fee$50
Renewal fee$20K
Inventory (initial)$80K – $160K
Total fee load11.0% of rev

What do units actually make?

Average unit sales run 27% below the personal care & beauty norm.

Avg gross sales$383K

Based on a single outlet - not a system average

Cited, not corroborated — printed on page 58 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
Median gross salesNot extracted
Item 19 typegross sales by outlet
Sample size1 outlet

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
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

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?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $383,392 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $181K–$438K (midpoint used)
FDD reports $3K–$18K

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.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$320K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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
Gross sales rank
No comparison data
Investment cost rank18th
Lower investment ranks lower (better)
Royalty rate rank51th
Lower royalty = lower percentile (better)
Unit count rank13th
vs Personal Care & Beauty peers
Risk score rank36th
Lower risk = lower percentile (better)

Compared against 177 Personal Care & Beauty brands

Showing the headline figures — all 138 extracted fields are in the Full FDD Report · $19 →

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

Metric
Knockout Beauty
Category median
vs median
Investment
$310K
$402Kmiddle half $261K–$677K · n=112
Below median, better than category
Revenue
$383K
$527Kmiddle half $402K–$892K · n=59
Below median, worse than category
Unit Count
5
40middle half 8–151 · n=111
Below median, worse than category

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?

Total units5Verified — printed on page 61 of the 2024 FDD (Item 20), and the table's own arithmetic closes on it two ways.
3-yr growth+100.0% (favorable vs category)

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
2021
1
Franchised units
2022
1±0
Franchised units
2023
2+1
Franchised units

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.

Growth insight

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?

SBA charge-offNot SBA-matched
Verdict score56/100 (higher is better)
Litigation0 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average56Verdict score 56/100

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.

Low confidence±15 pts
4171

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)

Yr 1: $0.1MYr 2: $0.1MNon-royalty: $0.0M

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

  1. 01MINOROnly 5 units in system with 100% YoY growth — extremely small franchise base makes financial projections unreliable and indicates early-stage/unproven model
  2. 02MEDHigh investment range ($181K-$438K) against undisclosed profitability creates significant risk of negative cash flow or extended breakeven periods
  3. 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

Showing the headline figures — all 138 extracted fields are in the Full FDD Report · $19 →

What are you signing up for?

Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term5 yrs
TerritoryProtected, not exclusive
Initial training82 hrs

Source: FDD 2024 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term5 years
Allowed renewalsℹ2
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Online sales rightsGranted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorRequired
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ10 mi
Right of first refusalℹNo
Termination notice30 days
Mandatory arbitrationYes
Arbitration locationLos Angeles, California
Jury trial waiverYes
Governing lawDE
Litigation count0
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

✓Site selection assistance
✗Grand opening support
✓Lease negotiation help

Technology: Shopify

Item 20 · call current owners

Franchisee Contacts

2 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 2 contacts · $49
Free preview
(970) 925-••••CO
Unlock all 2 contacts
(516) 200-••••NY

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

Are you the franchisor?

If you represent Knockout Beauty, you can request corrections or provide updated information.

Other 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.