Merle Norman Cosmetic Studio Franchise Cost, Revenue & Review 2026
- Investment
- $129K – $260K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Merle Norman is a cosmetics-studio franchise selling its own skincare and makeup lines with in-store consultations and makeovers. Franchisees run retail studios driven by walk-in traffic and repeat customers.
FranchiseVerdict summary · 2026
A Merle Norman Cosmetic Studio franchise requires a total initial investment of $129K – $260K. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), 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 scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $129K – $260K
- 9th pct Personal Care…
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 797
- 59th 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 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 $129K – $260K.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHNegative: net -34 franchised outlets in the latest year (5 opened, 39 closed); 2 signed but not yet open (Item 20).
- DECLINESystem contracting at -7.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Merle Norman Cosmetics, Inc.
- CEO title
- Chairman of the Board of Directors
- Jack Boison Nethercutt
- Incorporated in
- CA
- HQ
- 9130 Bellanca Avenue, Los Angeles, California 90045
- Auditor
- Holthouse | Carlin | Van Trigt LLP
- Audited financials
- Franchisor revenue
- $52.7M
- vs $54.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Jack Boison Nethercutt
- Headquarters
- CA
- Founded
- 1931
- FDD year
- 2025
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 52% below the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
The filing's Item 7 TOTAL row prints $129,486 to $260,437. Its own line items add to $128,412 to $248,437. The total is shown as the franchisor printed it; the lines are listed as printed. Table on FDD page 9 (PDF page 17); text layer complete, confirmed against a 130-dpi render.
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Real Estate (3) | — | — | |
| Initial Package of Inventory and Supplies | $23K | $45K | |
| Millwork Fixtures | $20K | $23K | |
| Acrylic Organizers | $5K | $7K | |
| Tables & Chairs | $1K | $2K | |
| Graphics | $350 | $620 | |
| Mirrors | $350 | $500 | |
| Merchandising Pieces | $759 | $1K | |
| Flooring (7) | $3K | $5K | |
| Lighting | $2K | $3K | |
| Interactive Play Table | $3K | $3K | |
| Digital Compu Stick | $0 | $250 | |
| Exterior Signage | $4K | $6K | |
| Construction | $19K | $84K | |
| Computer (hardware/software) (8) | $2K | $5K | |
| Working Capital, Deposits, Insurance, and Advertising (9) | $46K | $64K | |
| Total initial investment | $128K | $248K |
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
- $129K – $260K
- Top 40% of category vs category
- Liquid capital req'd
- $46K – $64K
- Middle of category vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- No royalty fee. Franchisees purchase MN Products at whole…
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% |
| Technology fee | $300 |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $23K – $45K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Merle Norman Cosmetic Studio makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Merle Norman Cosmetic Studio 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 annual revenue, royalty rate, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -7.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 8% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 medians
How Merle Norman Cosmetic Studio Compares
Category median of published Personal Care & Beauty 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
- 797
- Opened
- 5
- Last reporting year
- Closed
- 39
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 4.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 8.3%
- Net growth (3-yr)
- -7.1%
- Net unit change over 3 years
- 3-yr CAGR
- -7.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Signed, not yet open
- 2
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
- Transfer rate
- 4.0%
- Owners selling to other franchisees
- Continuity rate
- 95.3%
- Units that stayed open
- Termination rate
- 0.5%
- Franchisor-initiated terminations
- Ceased ops
- 4.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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.
Where the owners are · Item 20 owner list
75 current owners across 20 states.
- TX 24
- LA 23
- IL 4
- MS 3
- SC 3
- AL 2
- GA 2
- IA 2
- CA 1
- ID 1
- IN 1
- MA 1
- +8 more states
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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Merle Norman presents a contracting cosmetics franchise with misaligned economics, opaque unit performance data, and territorial vulnerability—suitable only for buyer-beware investors willing to validate unit-level profitability independently.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Holthouse | Carlin | Van Trigt LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Net sales for fiscal year ended December 31, 2024 ($52,668,000), down from $54,584,000 (2023) and $53,449,000 (2022). Company reported a net loss of $(2,141,000) in 2024. other_revenue reflects total other income, net of $1,042,000 (interest income, other income).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 50 / 100 verdict
- 01MINORUnit count declining 4.1% YoY (797 units) signals market contraction and potential franchise saturation
- 02MINORZero royalty fees create misaligned incentives—franchisor has minimal ongoing revenue dependency on franchisee success
- 03MEDNo disclosed average revenue or net income data (missing Item 19) prevents ROI validation and suggests franchisor may lack confidence in unit economics
- 04MINORUnprotected territory enables channel conflict and cannibalization, especially problematic in declining system
- 05MINOR$0 franchise fee indicates weak barrier to entry, potentially attracting uncommitted operators and inflating failure rates
- 06MINOR10-year term is unusually long without performance milestones or exit clauses, locking franchisees into aging brand
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
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 | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual (online modules and virtual live classes)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee selects site subject to MNC approval
- Franchisor financing
- Offered
- Item 10
- POS system
- MN POS Software Program
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MN POS Software Program
Item 20 · call current owners
Franchisee Contacts
75 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 Merle Norman Cosmetic Studio franchise?
The total investment to open a Merle Norman Cosmetic Studio franchise ranges from $129K – $260K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Merle Norman Cosmetic Studio franchise owners earn?
Merle Norman Cosmetic Studio makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Merle Norman Cosmetic Studio?
Merle Norman Cosmetic Studio is franchised by Merle Norman Cosmetics, Inc.. The FDD names no parent company. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Merle Norman Cosmetic Studio 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 Merle Norman Cosmetic Studio FDD and qualifies whose outlets they describe.
What is Merle Norman Cosmetic Studio's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Merle Norman Cosmetic Studio (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 Merle Norman Cosmetic Studio franchise locations are there?
As of their most recent FDD filing, Merle Norman Cosmetic Studio has 797 total units in the United States, including 797 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is Merle Norman Cosmetic Studio a good franchise to buy?
FranchiseVerdict rates Merle Norman Cosmetic Studio as a B-grade franchise with a verdict score of 50 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
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.