Magnolia Soap and Bath Co.Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Magnolia Soap and Bath Co. franchise requires a total initial investment of $272K – $499K, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $341K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 24 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $272K – $499K
- 29th pct Retail
- Avg gross sales
- $341K
- 2nd pct Retail
- Royalty
- 7.0%
- 24th pct Retail
- Units
- 50
- 19th pct Retail
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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
Only 0.0% of 24 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 40 to 16 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $272K – $499K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $341K/year (median $309K).
- Verdict A (Top Quintile) with a risk score of 19/100. SBA loan charge-off rate of 0.0% across 24 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 150.0% CAGR over 3 years with 50 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MAGNOLIA SOAP AND BATH CO. FRCH, LLC
- Parent company
- Magnolia Soap & Bath Holding Co., LLC
- Predecessor
- company
- Prior franchisor entity
- CEO title
- Founder and Owner
- Magen Bynum
- CEO experience
- 6 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MS
- HQ
- 706 Carter Avenue, New Albany, Mississippi 38652
- Auditor
- ATA, PC
- Audited financials
- Franchisor revenue
- $697K
- vs $1.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Magnolia Soap and Bath Product Co
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate retail bath and soap shops selling artisanal soaps, bath bombs, lotions, and related personal care products. Day-to-day operations include retail floor management, customer service, inventory management, product displays, and local marketing. Most locations are small-format brick-and-mortar or kiosk-style retail spaces.
- CEO
- Magen Bynum
- Headquarters
- MS
- Founded
- 2021
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| Initial Training Fee | $5K | $5K | |
| Costs and Expenses Associated with Initial Training Program | $1K | $3K | |
| Real Estate/Lease | $5K | $20K | |
| Project Management Fee | $5K | $5K | |
| Utilities Deposits | $500 | $1K | |
| Professional Fees | $5K | $10K | |
| Leasehold Improvements, Construction and/or Remodeling | $10K | $125K | |
| Exterior and Interior Signage | $8K | $20K | |
| Furniture, Fixtures, Equipment and Signage | $55K | $70K | |
| Business Management System | $10K | $10K | |
| Technology Fee - 3 Months | $2K | $2K | |
| Digital Marketing Fee - 3 Months | $3K | $3K | |
| Business Licenses and Permits | $550 | $6K | |
| Computer Systems | $2K | $4K | |
| Initial Inventory | $68K | $95K | |
| Grand Opening Advertising | $17K | $17K | |
| Insurance | $1K | $3K | |
| Operating Expenses/Additional Funds - 3 Months | $8K | $35K | |
| Design Fee | $7K | $7K | |
| Total initial investment | $272K | $499K |
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.
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
$20K
6.0% margin
Unlevered ROIC
5%
EBITDA / total invested capital
Payback
19.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $272K – $499K
- Better than avg vs category
- Liquid capital req'd
- $8K – $35K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Better than avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $68K – $95K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $341K
- Per unit, per year
- Median gross sales
- $309K
- Item 19 type
- gross_sales
- Sample size
- 30 units
- vs category median 49
- Range (low → high)
- $95K→$858K
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 7 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Retail averages
How Magnolia Soap and Bath Co. Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 50
- Opened
- 16
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (yr3)
- +66.7%
- Net unit change last year
- 3-yr CAGR
- +150.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 36
- Franchisor's next-year forecast
- Transfer rate
- 4.0%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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.
- Total loans
- 24
- Loan volume
- $5.0M
- Median loan
- $232K
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Magnolia Soap and Bath Co.'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 24 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Undisclosed profitability, pending fraud litigation, and going concern status create material uncertainty about unit economics and franchisor stability despite apparent unit growth.
Litigation (Item 3)
Two cases disclosed: (1) Buff City Soap LLC v. Magnolia Soap and Bath defendants - settled July 2022 for $50,000 with product line phase-out and advertising claim cessation; (2) Array of Soap, LLC v. Magnolia Soap and Bath Co. and Emily Burriss - pending in U.S. District Court for Southern District of Ohio, alleging violations of Ohio's Business Opportunity Plan Act, fraud, breach of contract, and unjust enrichment.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · ATA, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 19 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial instability or accounting issues at franchisor level
- 02HIGHPending litigation from former franchisee alleging fraud and violations of Ohio Business Opportunity Plan Act creates legal/regulatory exposure
- 03MEDNet Income not disclosed in FDD Item 19 — impossible to validate profitability claims against $271,900–$498,500 investment range
- 04MINORPrior IP infringement lawsuit settled for $50,000 (2022) suggests product/branding vulnerability in competitive soap market
- 05MINOR67% YoY unit growth appears strong but only 50 total units indicates small, volatile system susceptible to individual closures
- 06MINOR7% royalty on gross sales with no net income data means true take-home profit is unknowable
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Radius or Zip Codes |
| Protected territory | Yes |
| Territory radius | 5 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Granted |
| 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 | Mississippi |
| Litigation count | 2 |
View Item 3 litigation summary
Two cases disclosed: (1) Buff City Soap LLC v. Magnolia Soap and Bath defendants - settled July 2022 for $50,000 with product line phase-out and advertising claim cessation; (2) Array of Soap, LLC v. Magnolia Soap and Bath Co. and Emily Burriss - pending in U.S. District Court for Southern District of Ohio, alleging violations of Ohio's Business Opportunity Plan Act, fraud, breach of contract, and unjust enrichment.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 32 hrs
- Training location
- headquarters and/or affiliate-owned outlet, franchisee premises
- Ongoing training
- Required
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Magnolia Soap and Bath Co. · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Magnolia Soap and Bath Co. franchise?
The total investment to open a Magnolia Soap and Bath Co. franchise ranges from $272K – $499K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Magnolia Soap and Bath Co. franchise owners earn?
According to Item 19 of the Magnolia Soap and Bath Co. FDD, the average gross sales per unit is $341K. The median is $309K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Magnolia Soap and Bath Co.'s franchise failure rate?
Based on SBA 7(a) loan data, Magnolia Soap and Bath Co. has a charge-off rate of 0.0% across 24 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Magnolia Soap and Bath Co. franchise locations are there?
As of their most recent FDD filing, Magnolia Soap and Bath Co. has 50 total units in the United States, including 40 franchised units and 10 company-owned units. 16 new units were opened in the latest reporting year.
Is Magnolia Soap and Bath Co. a good franchise to buy?
FranchiseVerdict rates Magnolia Soap and Bath Co. as a A-grade franchise with a risk score of 19 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.
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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.