Salon Professional Academy Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Salon Professional Academy franchise requires a total initial investment of $1.1M – $2.1M, including a $49K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.0M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.1M – $2.1M
- 61st pct Personal Care…
- Avg gross sales
- $2.0M
- Combined outlet types30th pct Personal Care…
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 35
- 30th 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 $1.1M – $2.1M including a $49K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.0M/year (median $2.0M) (combines different outlet types in one figure).
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Salon Professional Education Company, LLC
- Predecessor
- APS, LLC
- Prior franchisor entity
- CEO title
- Co-CEO
- Jodi Brown / Jill Krahn
- Incorporated in
- ND
- HQ
- 4377 15th Avenue South, Fargo, ND 58103
- Auditor
- Smith + Howard
- Audited financials
- Franchisor revenue
- $2.4M
- vs $2.4M prior year
Overview
About
Salon Professional Education Company, LLC (d/b/a SPEC) franchises beauty and wellness schools that train students in hairstyling, cosmetology, esthetics, barbering, nails and/or massage under The Salon Professional Academy (TSPA) or Elevate Salon Institute (ESI) brands. Franchisees operate accredited-style B&W Schools offering hands-on student salon services and classroom education.
- CEO
- Jodi Brown / Jill Krahn
- Headquarters
- ND
- Founded
- 2004
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 203% above the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $75K | $120K |
| Equipment, build-out, other | $928K | $1.9M |
| Total initial investment | $1.1M | $2.1M |
Source: Salon Professional Academy 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.1M – $2.1M
- Middle of category vs category
- Liquid capital req'd
- $75K – $120K
- Middle of category vs category
- Franchise fee
- $49K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $25K |
| Renewal fee | $5K |
| Inventory (initial) | $25K – $30K |
What do units actually make?
Average unit sales run 185% above the personal care & beauty norm.
Combines different outlet types in one figure
Source: FDD 2026 · 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 Salon Professional Academy 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
$1.7M
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 Salon Professional Academy 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: 2026 FDD
Financial Performance
Combines different outlet types in one figure
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- $2.0M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- quartile breakdown
- Sample size
- 26 outlets
- vs category median 36
- Range (low → high)
- $638K→$4.0M
- Cohort dispersion (min → max)
- Quartile band
- $1.2M→$3.2M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2024
Compared against 177 Personal Care & Beauty brands
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 $2.0M/year in gross sales. Revenue-to-investment ratio: 1.3x. Combines different outlet types in one figure.
Fee burden
6.0% royalty + 2.0% ad fund.
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 Salon Professional Academy Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 35
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $6.2M
- Median loan
- $510K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
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
- 1
- Typical loan rate
- 5.9%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 6115
- Jobs supported
- 150
- 2.4 per loan
- Lender concentration
- 23%
- top lender's share
Top lenders financing Salon Professional Academy 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.
Premium insight
SBA Lending Report
Deep-dive into Salon Professional Academy's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
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
Litigation (Item 3)
2021: SPEC sued a franchisee (Vara School Professionals d/b/a TSPA Plainfield) in ND federal court for breach of franchise agreement (unpaid monies, late reports); settled with franchisee paying amounts owed and terminating the agreement. 2013: SPEC entered a consent order with Washington State Dept of Financial Institutions Securities Division after selling one unregistered franchise in 2008, agreeing to cease and desist from violating the state's Franchise Investment Protection Act.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith + Howard
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 600,000 to 1,000,000 population (typical) |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 9 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 2 |
View Item 3 litigation summary
2021: SPEC sued a franchisee (Vara School Professionals d/b/a TSPA Plainfield) in ND federal court for breach of franchise agreement (unpaid monies, late reports); settled with franchisee paying amounts owed and terminating the agreement. 2013: SPEC entered a consent order with Washington State Dept of Financial Institutions Securities Division after selling one unregistered franchise in 2008, agreeing to cease and desist from violating the state's Franchise Investment Protection Act.
Items 10, 11
Training & Operations
- Classroom training
- 178 hrs
- On-the-job training
- 0 hrs
- Training location
- Online/webcast, telephone, and/or Fargo, North Dakota training facilities
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Salon Professional Academy franchise?
The total investment to open a Salon Professional Academy franchise ranges from $1.1M – $2.1M, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Salon Professional Academy franchise owners earn?
According to Item 19 of the Salon Professional Academy FDD, the average gross sales per unit is $2.0M. The median is $2.0M. Important context: Combines different outlet types in one figure. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Salon Professional Academy 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 Salon Professional Academy FDD and qualifies whose outlets they describe.
What is Salon Professional Academy's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Salon Professional Academy (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 Salon Professional Academy franchise locations are there?
As of their most recent FDD filing, Salon Professional Academy has 35 total units in the United States, including 35 franchised units and 0 company-owned units.
Is Salon Professional Academy a good franchise to buy?
FranchiseVerdict rates Salon Professional Academy as a B-grade franchise with a verdict score of 58 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.