PROSE (Area Representative Business) Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Prose is a personalized hair care franchise whose area representatives sell and service custom, made-to-order hair products. Franchisees work as local distributors, building a customer base and managing consultations and subscriptions.
FranchiseVerdict summary · 2026
A PROSE (Area Representative Business) franchise requires a total initial investment of $55K – $487K, including a $45K – $450K franchise fee. The 2022 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 21 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $55K – $487K
- 13th pct Business Serv…
- Avg gross sales
- N/A
- 30th pct Business Serv…
- Royalty
- N/A
- Units
- 31
- 26th pct Business Serv…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services 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
- Total investment $55K – $487K including a $45K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below average), verdict score 35/100 (higher is better). SBA loan charge-off rate of 0.0% across 21 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- PROSE Franchising, LLC
- Parent company
- PROSE Holding Company, LLC
- CEO title
- Director (former CEO April 2020-July 2022)
- Nate McFarland
- Incorporated in
- AZ
- HQ
- 4250 North Drinkwater Blvd., #300, Scottsdale, AZ 85251
- Auditor
- Henry+Horne
- Audited financials
- Franchisor revenue
- $669K
- vs $1.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Overview
About
- CEO
- Nate McFarland
- Headquarters
- AZ
- Founded
- 2017
- FDD year
- 2022
- States available
- 24
Can you afford it, and what does the money buy?
Entry cost is about average for a business services franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial A/R Feenot refundable | $45K | $450K | |
| Demographic Analysis/Map of Territorynot refundable | $0 | $2K | |
| Travel and Living Expenses During Training (for all attendees)not refundable | $3K | $5K | |
| Furniture, Fixtures and Equipment (including Computer System)not refundable | $0 | $3K | |
| Signage & Business Cardsnot refundable | $100 | $1K | |
| Business Licensesnot refundable | $100 | $2K | |
| Insurancenot refundable | $2K | $3K | |
| Vehiclenot refundable | $0 | $3K | |
| Advertisingnot refundable | $3K | $4K | |
| Additional Funds - 3 Monthsnot refundable | $3K | $15K | |
| Total initial investment | $55K | $487K |
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
- $55K – $487K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $15K
- Top 40% of category vs category
- Franchise fee
- $45K – $450K
- Top 40% of category vs category
- Royalty
- -n/d
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $750 |
| Transfer fee | $4K |
| Renewal fee | $4K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How PROSE (Area Representative Business) Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 0
- 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
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 20 · 24 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.
- Total loans
- 21
- Loan volume
- $8.3M
- Median loan
- $397K
- average
- 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
- 8
- Defaults
- 0
Vintage analysis
PROSE (Area Representative Business) charge-off rate by loan vintage
Top lenders financing PROSE (Area Representative Business) franchisees
Showing 3 of 8 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.
Premium insight
SBA Lending Report
Deep-dive into PROSE (Area Representative Business)'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 21 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Area-representative offering with an auditor going-concern note (going_concern_note=true), negative net worth (-$1.85M) and net loss (-$55,105), financial_distress=true. No litigation and audited financials partly offset. Franchising since 2017 so it is not an early-stage startup, giving the going-concern doubt real weight.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Henry+Horne⚠ Going-concern note flagged
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: Yes
Score breakdown · what drove the 35 / 100 verdict
- 01MINORgoing_concern_note=true, not early-stage (since 2017)
- 02MINORNegative net worth -$1,851,770, net loss -$55,105, financial_distress=true
- 03MEDNo litigation, no bankruptcy; item19_disclosed=false
- 04MINOR31 units, 0% turnover
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2022 · 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 | Specific geographic territory |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 66 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
33 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
PROSE (Area Representative Business) · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a PROSE (Area Representative Business) franchise?
The total investment to open a PROSE (Area Representative Business) franchise ranges from $55K – $487K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PROSE (Area Representative Business) franchise owners earn?
PROSE (Area Representative Business) 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 PROSE (Area Representative Business)'s franchise failure rate?
Based on SBA 7(a) loan data, PROSE (Area Representative Business) has a charge-off rate of 0.0% across 21 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 PROSE (Area Representative Business) franchise locations are there?
As of their most recent FDD filing, PROSE (Area Representative Business) has 31 total units in the United States.
Is PROSE (Area Representative Business) a good franchise to buy?
FranchiseVerdict rates PROSE (Area Representative Business) as a D-grade franchise with a verdict score of 35 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
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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.