Lemon Tree Family Salons Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Lemon Tree Family Salons is a value hair salon franchise offering affordable cuts, color, and styling for the whole family. Franchisees run the salons, managing stylists, scheduling, and retail products.
FranchiseVerdict summary · 2026
A Lemon Tree Family Salons franchise requires a total initial investment of $185K – $278K, including a $35K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $185K – $278K
- 20th pct Personal Care…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 48
- 32nd 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 $185K – $278K including a $35K franchise fee.
- RETURNSFY2025 total revenues comprise franchise fee revenue $32,094, royalty fee revenue $720,955, brand fund revenue $215,810, and other revenues $3,049. Audited by A&G, LLP (Dallas, TX); 2024/2023 audited by a predecessor auditor (report dated April 10, 2025). Company reports a member's deficit of ($52,939) at 12/31/2025.
- RISKVerdict A (Strongest tier), verdict score 60/100 (higher is better).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Lemon Tree Development LLC
- Parent company
- Lemon Tree Holdings, LLC
- CEO title
- President
- Jonathan Shaw
- Incorporated in
- NJ
- HQ
- 8 Campus Drive, Suite 105, PMB 1029, Parsippany, New Jersey 07054
- Auditor
- A&G, LLP
- Audited financials
- Franchisor revenue
- $972K
- vs $938K prior year
Overview
About
- CEO
- Jonathan Shaw
- Headquarters
- NJ
- Founded
- 2009
- FDD year
- 2026
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 56% below 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 | $35K | $35K |
| Working capital (3–6 mo) | $30K | $40K |
| Equipment, build-out, other | $120K | $203K |
| Total initial investment | $185K | $278K |
Source: Lemon Tree Family Salons 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
- $185K – $278K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $40K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- Greater of $75/week or 6% of Gross Revenue
- Ad fund
- $135 per week flat fee (Brand Fund); may increase up to 1…
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $144 |
| Transfer fee | $10K |
| Inventory (initial) | $4K – $5K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Lemon Tree Family Salons did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Lemon Tree Family Salons unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
59%
Within the 30–60% "attractive franchise" band
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
FY2025 total revenues comprise franchise fee revenue $32,094, royalty fee revenue $720,955, brand fund revenue $215,810, and other revenues $3,049. Audited by A&G, LLP (Dallas, TX); 2024/2023 audited by a predecessor auditor (report dated April 10, 2025). Company reports a member's deficit of ($52,939) at 12/31/2025.
- Item 19 type
- gross sales
- Sample size
- 34
- vs category median 38
- Range (low → high)
- $62K→$753K
- Cohort dispersion (min → max)
- Quartile band
- $161K→$631K
- Bottom 25% → top 25%
- Transparency tier
- full
- 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
- 3 / 10
- vs category median 4 / 10 · below
Compared against 179 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Personal Care & Beauty average of 7.8%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System expanding at 5.9% CAGR over 3 years across 48 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 Lemon Tree Family Salons Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.6%
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (3-yr)
- +5.9%
- Net unit change over 3 years
- 3-yr CAGR
- +5.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $1.3M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (9 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Lemon Tree presents caution-level risk due to missing profitability data, slow growth trajectory, and unclear unit economics that prevent informed investment decisions despite protected territories and no litigation history.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A&G, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 60 / 100 verdict
- 01MINORNo Net Income disclosure (Item 19) prevents accurate profitability assessment and ROI calculation
- 02MINORSlow unit growth of only 5.9% YoY suggests market saturation or franchisee dissatisfaction in a mature 48-unit system
- 03MINORHigh initial investment ($184K-$278K) combined with unknown profitability creates significant financial risk
- 04MEDRoyalty structure ($75 minimum + 6%) may be burdensome on lower-revenue locations, particularly problematic given undisclosed margins
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% 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 |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Arbitration location | New Jersey |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 28 hrs
- Training location
- Virtually at franchisee's salon or location near franchisee; at or near franchisor's headquarters
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisor approves site; franchisee must use designated real estate leasing company for site selection services
- Franchisor financing
- Not offered
- Item 10
- POS system
- ProPoint Solutions
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProPoint Solutions
Item 20 · call current owners
Franchisee Contacts
40 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Lemon Tree Family Salons · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Lemon Tree Family Salons franchise?
The total investment to open a Lemon Tree Family Salons franchise ranges from $185K – $278K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Lemon Tree Family Salons franchise owners earn?
Lemon Tree Family Salons does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Lemon Tree Family Salons 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 Lemon Tree Family Salons FDD and qualifies whose outlets they describe.
What is Lemon Tree Family Salons's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Lemon Tree Family Salons (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 Lemon Tree Family Salons franchise locations are there?
As of their most recent FDD filing, Lemon Tree Family Salons has 48 total units in the United States, including 36 franchised units and 12 company-owned units. 4 new units were opened in the latest reporting year.
Is Lemon Tree Family Salons a good franchise to buy?
FranchiseVerdict rates Lemon Tree Family Salons as a A-grade franchise with a verdict score of 60 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
Are you the franchisor?
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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.