Magnolia Soap and Bath Co. Franchise Cost, Revenue & Review 2026
- Investment
- $272K – $499K
- Disclosed sales
- $356K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 24 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Magnolia Soap and Bath Co. is a retail franchise selling natural, plant-based soaps, bath products, and home fragrances. Franchisees run the shops, managing inventory, product displays, and customer service.
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 $356K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 24 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $272K – $499K
- 31st pct Retail
- Avg gross sales
- $356K
- 2nd pct Retail
- Royalty
- 7.0%
- 29th pct Retail
- Units
- 50
- 20th pct Retail
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail 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 $272K – $499K including a $60K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $356K/year (median $305K).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 0.0% across 24 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +16 franchised outlets in the latest year (16 opened, 0 closed); 12 signed but not yet open (Item 20).
- GROWTHSystem growing at 150.0% CAGR over 3 years with 50 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Magnolia Soap and Bath Co. FRCH, LLC
- Parent company
- Magnolia Soap & Bath Holding Co., LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- company
- Prior franchisor entity
- CEO title
- President
- Dianne Davis
- 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
- $1.2M
- vs $697K 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
- CEO
- Dianne Davis
- Headquarters
- MS
- Founded
- 2021
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 15% above the typical retail franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown20 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $272K – $499K
- Top 40% of category vs category
- Liquid capital req'd
- $8K – $35K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 7.0%
- Tiered by sales volume · 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 |
What do units actually make?
Average unit sales run 56% below the retail norm.
Source: FDD 2025 · 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 Magnolia Soap and Bath Co. 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
$407K
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
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 Magnolia Soap and Bath Co. unit return on the cash you put in?
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.
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.
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: 2025 FDD
Financial Performance
- Avg gross sales
- $356K
- Per unit, per year
- Median gross sales
- $305K
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 revenue
- Sample size
- 20 outlets
- vs category median 46 · small
- Range (low → high)
- $154K→$858KNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 3 / 10 · above
Compared against 278 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.
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 $356K/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 9.0% (near the Retail median).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 150.0% CAGR over 3 years across 50 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 Retail medians
How Magnolia Soap and Bath Co. Compares
Category median of published Retail 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?
Source: FDD 2025 · Item 20
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
- N/A
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (3-yr)
- +150.0%
- Net unit change over 3 years
- 3-yr CAGR
- +150.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 12
- 0.24 per open outlet · Item 20 Table 5
- Projected new
- 17
- 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 12 · 13 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.
13
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- MS 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.
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%
- on 24 loans · 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
- Typical loan rate
- 10.7%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 456120
- Jobs supported
- 177
- 3.5 per loan
- Lender concentration
- 58%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Magnolia Soap and Bath Co. franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Magnolia Soap and Bath Co. from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 67%
- Avg interest rate
- 10.69%
- Lender concentration
- 58.3%
- Job velocity
- 3.5 per $100K
- Jobs supported
- 177
Top SBA lendersTop lender holds 58% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 14 | $2.2M | N/A |
| 2 | First Bank of the Lake | 5 | $1.5M | N/A |
| 3 | INB, National Association | 1 | $200K | N/A |
| 4 | Community Bank of Mississippi | 1 | $150K | N/A |
| 5 | Readycap Lending, LLC | 1 | $485K | N/A |
| 6 | Great Plains National Bank | 1 | $30K | N/A |
| 7 | HomeTrust Bank | 1 | $400K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 7 | 0 | -- |
| FLFlorida | 3 | 0 | -- |
| ALAlabama | 2 | 0 | -- |
| CTConnecticut | 2 | 0 | -- |
| NDNorth Dakota | 2 | 0 | -- |
| OHOhio | 2 | 0 | -- |
| WIWisconsin | 2 | 0 | -- |
| ILIllinois | 1 | 0 | -- |
| INIndiana | 1 | 0 | -- |
| MOMissouri | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 24 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Case 1: Buff City Soap LLC et al. v. Magen Bynum et al. (Civil Action No. 3:20cv55-NBB-RP) - competitor filed IP/trade secret complaint; settled July 2022 for $50,000 with no liability admitted. Case 2: Array of Soap, LLC v. Magnolia Soap and Bath Co. and Emily Burriss (Civil Action No. 2:25-cv-00339) - former franchisee alleging Ohio Business Opportunity Plan Act violation, fraud, breach of contract, unjust enrichment; pending.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · ATA, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor (Magnolia Soap and Bath Co. FRCH, LLC) statement of income total revenues for FY ended 12/31/2024: royalties $576,908, brand fund fees $151,871, franchise fees $270,964, technology fees $33,500, digital marketing fees $34,000, digital board fees $10,849, training fees $63,000, transfer fees $25,000. Net loss of ($270,835).
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 75 / 100 verdict
- 01HIGHPending litigation from former franchisee alleging fraud and violations of Ohio Business Opportunity Plan Act creates legal/regulatory exposure
- 02MEDNet Income not disclosed in FDD Item 19 — impossible to validate profitability claims against $271,900–$498,500 investment range
- 03MINORPrior IP infringement lawsuit settled for $50,000 (2022) suggests product/branding vulnerability in competitive soap market
- 04MINOR67% YoY unit growth appears strong but only 50 total units indicates small, volatile system susceptible to individual closures
- 05MINOR7% 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | New Albany, Mississippi |
| Jury trial waiver | Yes |
| Governing law | MS |
| Litigation count | 2 |
View Item 3 litigation summary
Case 1: Buff City Soap LLC et al. v. Magen Bynum et al. (Civil Action No. 3:20cv55-NBB-RP) - competitor filed IP/trade secret complaint; settled July 2022 for $50,000 with no liability admitted. Case 2: Array of Soap, LLC v. Magnolia Soap and Bath Co. and Emily Burriss (Civil Action No. 2:25-cv-00339) - former franchisee alleging Ohio Business Opportunity Plan Act violation, fraud, breach of contract, unjust enrichment; pending.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 32 hrs
- Training location
- Remote and New Albany, Mississippi headquarters/affiliate-owned outlet
- Ongoing training
- Required
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Not specified by name
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Not specified by name
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $356K. The median is $305K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Magnolia Soap and Bath Co.?
Magnolia Soap and Bath Co. is franchised by Magnolia Soap and Bath Co. FRCH, LLC. Its parent company is Magnolia Soap & Bath Holding Co., LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Magnolia Soap and Bath Co. 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 Magnolia Soap and Bath Co. FDD and qualifies whose outlets they describe.
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 verdict score of 75 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
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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.