Salon Professional Education Company (SPEC)Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Salon Professional Education Company (SPEC) franchise requires a total initial investment of $582K – $2.0M, including a $49K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.9M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $582K – $2.0M
- 72nd pct Healthcare
- Avg gross sales
- $1.9M
- 40th pct Healthcare
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 34
- 48th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare 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
The system contracted 6% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $582K – $2.0M including a $49K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $1.7M).
- Verdict B (Above Average) with a risk score of 58/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Salon Professional Education Company, LLC
- Ultimate parent
- None
- CEO title
- President
- Jodi Brown and Jill Krahn
- Incorporated in
- ND
- HQ
- 4377 15th Avenue South, Fargo, ND 58103
- Auditor
- Smith + Howard PC
- Audited financials
- Franchisor revenue
- $2.2M
- vs $2.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Salon Professional Education Company franchisees operate cosmetology and beauty trade schools, delivering state-regulated curriculum and hands-on training to students pursuing licenses in hair, nails, and esthetics. Day-to-day operations include student recruitment/enrollment, instructor management, regulatory compliance, and tuition collection. Revenue is primarily tuition-based with high fixed overhead (facility, staff, compliance).
- CEO
- Jodi Brown and Jill Krahn
- Headquarters
- ND
- Founded
- 2004
- FDD year
- 2025
- States available
- 20
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $75K | $120K |
| Equipment, build-out, other | $458K | $1.9M |
| Total initial investment | $582K | $2.0M |
Source: Salon Professional Education Company (SPEC) 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$300K
16.0% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $582K – $2.0M
- Below avg, review vs category
- Liquid capital req'd
- $75K – $120K
- Near category avg vs category
- Franchise fee
- $49K – $49K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $25K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $1.7M
- Item 19 type
- Actual
- Sample size
- 26 units
- vs category median 12 · large
- Range (low → high)
- $709K→$4.0M
- Cohort dispersion (min → max)
- Quartile band
- $986K→$3.2M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 201 Healthcare brands
vs Healthcare averages
How Salon Professional Education Company (SPEC) Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 34
- Opened
- 3
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 3.2%
- Net growth (yr3)
- -5.6%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Ceased ops
- 2.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting franchise system with hidden profitability data, litigation history, and substantial capital requirement creates elevated investment risk.
Litigation (Item 3)
Two matters disclosed: (1) December 2021 action against franchisee Vara School Professionals, Inc. d/b/a The Salon Professional Academy Plainfield (formerly Shorewood) and owners Richard Dramato, Vivian Dramato, and Audrey Amato in U.S. District Court for District of North Dakota (Case No. 3:21-CV-00222-ARS) for breach of franchise agreement including failure to pay monies and file timely reports. Settled with defendants agreeing to pay substantial monies owed, mutual termination of franchise agreement, and no disparaging conduct covenant. (2) 2008 unregistered franchise sale in Washington state. November 13, 2013 consent order (Order No: S-13-1358-CO01) with Washington Department of Financial Institutions Securities Division requiring cease and desist from violations of Washington Franchise Investment Protection Act.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith + Howard PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 rating
- 01MINORDeclining unit count (-5.6% YoY) signals system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI analysis; only gross revenue ($1.875M avg) provided without profitability metrics
- 03HIGHRecent litigation history (2021 breach of contract suit; 2013 Washington consent order for unregistered sale) indicates compliance and relationship management issues
- 04MEDHigh initial investment range ($581.8K–$2.0M+) relative to undisclosed net income creates significant downside risk without clear profit visibility
- 05MINORLong 15-year term locks franchisees into relationship with declining system and franchisor with regulatory history
- 06MINOR6% royalty on gross revenues is extractive if net margins are thin, particularly in education sector with competitive pressure
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 | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 600,000 |
| Online sales rightsℹ | 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Cass County, North Dakota |
| Jury trial waiver | Yes |
| Governing law | North Dakota |
| Litigation count | 2 |
View Item 3 litigation summary
Two matters disclosed: (1) December 2021 action against franchisee Vara School Professionals, Inc. d/b/a The Salon Professional Academy Plainfield (formerly Shorewood) and owners Richard Dramato, Vivian Dramato, and Audrey Amato in U.S. District Court for District of North Dakota (Case No. 3:21-CV-00222-ARS) for breach of franchise agreement including failure to pay monies and file timely reports. Settled with defendants agreeing to pay substantial monies owed, mutual termination of franchise agreement, and no disparaging conduct covenant. (2) 2008 unregistered franchise sale in Washington state. November 13, 2013 consent order (Order No: S-13-1358-CO01) with Washington Department of Financial Institutions Securities Division requiring cease and desist from violations of Washington Franchise Investment Protection Act.
Items 10, 11
Training & Operations
- Classroom training
- 178 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site at Restaurant location
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
42 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Salon Professional Education Company (SPEC) · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Salon Professional Education Company (SPEC) franchise?
The total investment to open a Salon Professional Education Company (SPEC) franchise ranges from $582K – $2.0M, 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 Education Company (SPEC) franchise owners earn?
According to Item 19 of the Salon Professional Education Company (SPEC) FDD, the average gross sales per unit is $1.9M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Salon Professional Education Company (SPEC)'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Salon Professional Education Company (SPEC) (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 Education Company (SPEC) franchise locations are there?
As of their most recent FDD filing, Salon Professional Education Company (SPEC) has 34 total units in the United States, including 34 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Salon Professional Education Company (SPEC) a good franchise to buy?
FranchiseVerdict rates Salon Professional Education Company (SPEC) as a B-grade franchise with a risk score of 58 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.
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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.