Lemon Tree Family SalonsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Lemon Tree Family Salons franchise requires a total initial investment of $185K – $278K, including a $35K franchise fee. Per the 2026 FDD, average unit revenue was $358K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $185K – $278K
- 17th pct Personal Care…
- Avg gross sales
- $358K
- 6th pct Personal Care…
- Royalty
- N/A
- Units
- 48
- 27th pct Personal Care…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $185K – $278K including a $35K franchise fee.
- Average unit revenue of $358K/year.
- Verdict A (Top Quintile) with a risk score of 41/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Lemon Tree Development LLC
- Parent company
- Lemon Tree Holdings, LLC
- Incorporated in
- NJ
- HQ
- 8 Campus Drive, Suite 105, PMB 1029, Parsippany, New Jersey 07054
- Auditor
- A&G, LLP
- Audited financials
- Franchisor revenue
- $887K
- vs $938K prior year
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.
- CEO
- Jonathan Shaw
- Headquarters
- NJ
- Founded
- 2009
- FDD year
- 2026
- States available
- 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$75K
21.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $185K – $278K
- Better than avg vs category
- Liquid capital req'd
- $30K – $40K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- the greater of $75 and 6% of Gross Revenue
- Ad fund
- $135 per week
- 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 |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $358K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 34 units
- vs category median 35
- 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
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Lemon Tree Family Salons Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 4
- Last reporting year
- Closed
- 2
- Turnover rate
- 4.2%
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- +5.9%
- Net unit change last year
- 3-yr CAGR
- +5.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Lemon Tree Family Salons's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
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
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 41 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 28 hrs
- Training location
- On-site and corporate
- 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?
According to Item 19 of the Lemon Tree Family Salons FDD, the average gross sales per unit is $358K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 34 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 risk score of 41 out of 100, 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?
If you represent Lemon Tree Family Salons, you can request corrections or provide updated information.
Claim this brandOther 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.