Salon Professional Academy Franchise Cost & 2026 FDD Data
56/100
Second tier
56 this brand55 Education medianlikely 52–60: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,232 of 3,069 graded brands
Why a B: Helped by financial health and transparency. Held back by unit economics, unit growth and legal record. See all six factors
- Total investment
- $1.1M – $2.1M
- excl. real estate
- Avg gross sales
- $2.0M
- 26 Overall outlets; not profit
- SBA charge-off
- 9 resolved of 13 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Salon Professional Academy franchise requires a total initial investment of $1.1M – $2.1M, excluding real estate, including a $49K franchise fee. Once open, the ongoing royalty is 6.0%. Per the 2026 FDD, average gross sales were $2.0M (Item 19: 26 Overall outlets; gross sales, not profit). Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low (the current year's filing)
Evidence for the headline figures: 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Education median
Top edge: green = better than the Education median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $2.0M/year (outlet median $2.0M; combines different outlet types in one figure; Item 19: 26 Overall outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 1.
AT STAKEOne unit at the Item 7 midpoint: $202K a year in payments on assumed SBA 7(a)-style terms.You put in about $313K of your own cash and personally guarantee a $1.3M loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- -1 franchised outlets over the two years to 2024 (Item 20, outlet counts). Ask owners why outlets closed.
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
Checked and clear: no auditor doubt that the franchisor can keep operating, no pending lawsuit naming the franchisor, no franchisor right to compete inside your territory, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 26 units. Not on file here, so ask: SBA charge-off rate against the category median.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 8.3× the Education median ($188K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
The filing's Item 7 TOTAL row prints $1,052,420 to $2,073,624 (p20). Its own high column adds to $2,073,674, which is also what the cover and risk factor 4 state - a $50 typo in the table's total. The total is shown as the table prints it.
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Salon Professional Education Company, LLC (Item 1: 4377 15th Avenue South, Fargo, ND 58103) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (first 3 months) | $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 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| RoyaltyPercentage of sales; paid monthly (Item 6). Minimum: Minimum monthly Royalty Fee of $1,500 regardless of Gross Revenues | 6.0% of gross revenues |
| Marketing / ad fund | 2.0% of gross revenues |
| Technology feeCurrently no required Technology Fee, but subject to change; if imposed, up to $250/month (increase capped at avg 20%/year over any 5-year period) | $250/month |
| Transfer fee | $25,000 |
| Renewal fee | $5,000 |
| Total fee loadbelow the Education median of 9.0% (lean) | 8.0% of sales |
A 8.0% total fee load is below the Education median of 9.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 4.7× the Education median ($427K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Salon Professional Academy unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $2.0M (FDD p.48), and the royalty and ad fund take about $161K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $202K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $1.6M Item 7 midpoint is a $1.3M loan, paid over 10 years at 10.5%: $202K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Salon Professional Academy's past SBA 7(a) loans averaged 5.9% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $313K Assumption (the part the loan does not cover of the $1.6M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $1.3M.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Salon Professional Academy unit leave you each year after the loan payment?
Item 19: $2,018,699 average for 26 outlets (Overall). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Minimum monthly Royalty Fee of $1,500 regardless of Gross Revenues”; “6% of Gross Revenues, subject to a $1,500 minimum monthly royalty” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $1.1M to $2.1M
Item 7's $75K to $120K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $1.3M at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Salon Professional Education Company, LLC
Financial performance
- Range (low → high)
- $638K→$4.0MSource: 2026 FDD, page 48
- Cohort dispersion (min → max)
- Top and bottom 25%
- $1.2M→$3.2M
- Bottom group → top group: the top and bottom 25% as the filing reports them
Percentile ranks within Education
Each rank is among the Education brands that report that figure (the count is under each bar).
vs Education medians
How Salon Professional Academy compares
Category median of published Education 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.
Who are you contracting with?
Salon Professional Education Company, LLC.
Same franchisor, other program: Salon Professional Education Company (SPEC). Each is a separate offering with its own page.
Item 21 (audited financials) · audited statements · 2026 FDD
The franchisor's own finances
The franchisor paid out about 93% of its latest net income as dividends. A franchisor that keeps little of its own profit has less of a cushion if the system has a bad year; ask how support and the ad fund are funded.
The figures, with their pages
- Net income
- $512Klatest year · FDD Item 21
- Dividends paid
- $474K93% of net income (our arithmetic) · FDD p.124
- Total assets
- $1.0MFDD Item 21
- Equity
- $631KFDD Item 21
Item 1 (the franchisor) · 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
- latest fiscal year in the 2026 FDD; $2.4M the year before
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
Is the system healthy?
-1 franchised outlets over the two years to 2024 (36 to 35, -2.8% in total, -1.4% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 6
- 0.17 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units fell from 36 in 2023 to 35 in 2025
Axis does not start at zero.
Source and method
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 13
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $6.2M
- Average loan
- $474K
- loan volume divided by loans
- Charge-off rate
- 9 resolved of 13 loans: too few to judge
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 9 resolved of 13 loans: too few to judge
- Recent-loan charge-off
- 9 resolved of 13 loans: too few to judge
- Lenders
- 7
- Average interest rate
- 5.9%
- Jobs reported
- 150
- Lender concentration
- 23%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Salon Professional Academy from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 69%
- Average interest rate
- 5.9%
- Lender concentration
- 23%
- Jobs reported
- 150
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| U.S. Bank, National Association | ||
| 3 | $1.8M | Not on file |
| The Huntington National Bank | ||
| 3 | $1.1M | Not on file |
| KeyBank National Association | ||
| 2 | $350K | Not on file |
| EagleBank | ||
| 2 | $550K | Not on file |
| Brookline Bank, a Division of Beacon Bank and Trust | ||
| 1 | $1.1M | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| MI Michigan | 3 | 0 | Too few1 resolved |
| DC Washington DC | 2 | 0 | Too few1 resolved |
| OR Oregon | 2 | 0 | Too few2 resolved |
| IN Indiana | 1 | 0 | Too few1 resolved |
| MN Minnesota | 1 | 0 | Too few1 resolved |
| NC North Carolina | 1 | 0 | Too few1 resolved |
| NJ New Jersey | 1 | 0 | Too few1 resolved |
| PA Pennsylvania | 1 | 0 | Too few0 resolved |
| WI Wisconsin | 1 | 1 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk in the grade: legal, then unit economics and unit growth. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 56/100 (category median 55); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; franchisor net income positive; dividends paid equal to 93% of net income (Item 21; shown, not scored)
- Unit economics Weighs on itAvg gross sales $2.0M on a $1.6M investment midpoint, 1.3x (gross sales, not profit)
- Unit growth Weighs on it-1 franchised outlets over the two years to 2024 (36 to 35, -2.8% in total, -1.4% a year compounded); turnover 2.9%
- Scale Neutral35 franchised units; franchising since 2008
- Legal Weighs on it, weakest dimension2 matters naming the franchisor among the Item 3 matters we list (5.7 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: No
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Litigation case detail2 matters · Item 3
Litigation cases
The franchisor
Concluded (2)
Matter with no printed caption
settledBrought against a franchisee · filed 2021 · U.S. District Court, District of North Dakota · 3:21-CV-00222-ARS
“In December 2021, we brought an action against a franchisee, Vara School Professionals, Inc. d/b/a The Salon Professional Academy Plainfield f/k/a The Salon Professional Academy Shorewood, and its owners Richard Dramato, Vivian Dramato and Audrey Amato, (the”Page 10 of the 2026 FDD, Item 3
Matter with no printed caption
concludedGovernment or regulatory action · filed 2013-11-13 · Washington Department of Financial Institutions, Securities Division · S-13-1358-CO01
“On November 13, 2013, we entered into a consent order with the state of Washington Department of Financial Institutions Securities Division (Order No: S-13-1358-CO01) and agreed to cease and desist from violating the Franchise Investment Protection Act of the state of Washington.”Page 11 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory size | “"A protected territory will generally consist of a geographic area that has a population of approximately 600,000 to 1 million individuals... You will not receive an exclusive territory."” |
| Online sales rights | Reserved by franchisor |
| Franchisor can compete | No |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 50 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination grounds | 9 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
Items 10 (financing), 11 (training and support)
Training and 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
- Time to open
- 6–12 mo
- From signing to launch (FDD p.37)
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Salon Professional Academy franchise?
Per the 2026 FDD, the total investment to open a Salon Professional Academy franchise ranges from $1.1M to $2.1M, with an initial franchise fee of $49K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.
What do Salon Professional Academy franchise owners earn?
According to Item 19 of the Salon Professional Academy FDD, average gross sales were $2.0M (26 Overall outlets; gross sales, not profit). The median is $2.0M. Combines different outlet types in one figure. What an owner keeps depends on location, operating costs and management.
Who owns Salon Professional Academy?
Salon Professional Academy is franchised by Salon Professional Education Company, LLC. Source: FDD Item 1, 2026 filing.
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?
There is no published franchise failure rate, and Salon Professional Academy has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Salon Professional Academy franchise locations are there?
Per the 2026 FDD, Salon Professional Academy has 35 franchised units and 0 company-owned (35 in all). In the latest year, the number of franchised outlets grew by 1.
Is Salon Professional Academy a good franchise to buy?
FranchiseVerdict gives Salon Professional Academy a B Verdict grade (Second tier) with a verdict score of 56 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health and transparency. Held back by unit economics (avg gross sales $2.0M on a $1.6M investment midpoint, 1.3x: gross sales, not profit), unit growth and legal record. The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Education franchises
Similar investment first, then by grade
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.