Merle Norman Cosmetic Studio Franchise Cost, Revenue & Review 2026
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 $48K – $260K. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $48K – $260K
- 3rd pct Personal Care…
- Avg gross sales
- N/A
- Royalty
- N/A
- 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 avg · 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 $48K – $260K.
- RETURNSNet 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).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- 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.
- Parent company
- None
- 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 71% below the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown45 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
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $64K
- Top 40% of category vs category
- Franchise fee
- N/A
- Top 40% of category vs category
- 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% of gross sales |
| 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Merle Norman Cosmetic Studio unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
96%
Above the 30–60% band. Verify revenue is per-unit average
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
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).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Merle Norman Cosmetic Studio Compares
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
- 16.8%
- 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
3-year detail · Item 20
- Opened (3yr)
- 28
- Closed (3yr)
- 126
- Terminated (3yr)
- 8
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 97
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
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)
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)
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 | none |
| 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
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 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), 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?
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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.