Lemon Tree Family Salons
Bottom line
- Total investment $185K – $278K including a $35K franchise fee.
- Average unit revenue of $358K/year.
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 17 loans (below the industry average).
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 Lemon Tree Family Salons unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Lemon Tree Family Salons units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.0M
on $5.0M purchase
Total debt
$4.0M
SBA $2.5M + senior + seller note
Overview
About
Lemon Tree Family Salons operates full-service family salon locations offering haircuts, styling, and related services for all ages. Franchisees manage daily salon operations, staff supervision, customer service, and marketing within their protected territory. Revenue depends on foot traffic conversion, service pricing, and customer retention in a competitive local beauty services market.
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 · 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 51 / 100 rating
- 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
- 05MEDAverage revenue of $357,825 is modest for a salon concept and provides limited cushion for operating expenses
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
40 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Lemon Tree Family Salons · FDD (2026) PDF