Merle Norman Cosmetic StudioFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Merle Norman Cosmetic Studio franchise requires a total initial investment of $48K – $260K. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $48K – $260K
- 2nd pct Personal Care…
- Avg gross sales
- N/A
- 34th pct Personal Care…
- Royalty
- N/A
- Units
- 797
- 46th pct Personal Care…
- SBA default
- N/A
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
Franchising since 1934. Systems this mature have refined operations and brand recognition.
Franchised units fell from 858 to 797 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $48K – $260K including a $0 franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 65/100.
- System 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
- 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
- $54.6M
- vs $52.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate retail cosmetics studios selling Merle Norman branded skincare, makeup, and beauty products through direct consultation and application services. Day-to-day responsibilities include product sales, customer consultations, beauty consultations/makeovers, inventory management, and studio operations. The model relies on walk-in traffic, local marketing, and repeat customer relationships in a mature, competitive beauty retail market.
- CEO
- Jack Boison Nethercutt
- Headquarters
- CA
- Founded
- 1931
- FDD year
- 2025
- States available
- 45
FDD Item 7 · 2025 filing · 45 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Real Estate (Regional Mall) | — | — | |
| Initial Package of Inventory and Supplies (Regional Mall) | $23K | $45K | |
| Studio Costs: Fixtures and Furnishings (Regional Mall) | $20K | $23K | |
| Studio Costs: Millwork Fixtures (Regional Mall) | $5K | $7K | |
| Studio Costs: Acrylic Organizers (Regional Mall) | $1K | $2K | |
| Studio Costs: Tables & Chairs (Regional Mall) | $350 | $620 | |
| Studio Costs: Graphics (Regional Mall) | $350 | $500 | |
| Studio Costs: Mirrors (Regional Mall) | $759 | $1K | |
| Studio Costs: Merchandising Pieces (Regional Mall) | $3K | $5K | |
| Studio Costs: Flooring (Regional Mall) | $2K | $3K | |
| Studio Costs: Lighting (Regional Mall) | $3K | $3K | |
| Studio Costs: Interactive Play Table (Regional Mall) | $0 | $250 | |
| Studio Costs: Digital Compu Stick (Regional Mall) | $4K | $6K | |
| Studio Costs: Exterior Signage / Construction (Regional Mall) | $19K | $84K | |
| Computer (hardware/software) (Regional Mall) | $2K | $5K | |
| Working Capital, Deposits, Insurance, and Advertising (Regional Mall) | $46K | $64K | |
| Real Estate (Non-Mall) | — | — | |
| Initial Package of Inventory and Supplies (Non-Mall) | $23K | $45K | |
| Studio Costs: Fixtures and Furnishings (Non-Mall) | $16K | $19K | |
| Studio Costs: Millwork Fixtures (Non-Mall) | $5K | $7K | |
| Total initial investment | $262K | $485K |
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
- $48K – $260K
- Better than avg vs category
- Liquid capital req'd
- $2K – $64K
- Better than avg vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- 0
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $0 |
| Renewal fee | $0 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Personal Care & Beauty averages
How Merle Norman Cosmetic Studio Compares
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 (yr3)
- -4.1%
- Net unit change last year
- 3-yr CAGR
- -7.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 32
- 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 · 23 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
No litigation is required to be disclosed
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)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| 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 | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- POS system
- MN POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MN POS
Item 20 · call current owners
Franchisee Contacts
84 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Merle Norman Cosmetic Studio · FDD (2025) PDF
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 $48K – $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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 858 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 C-grade franchise with a risk score of 65 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 Merle Norman Cosmetic Studio, 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.