Salons by JC
Formerly known as JNC Real Estate Development
Bottom line
- Total investment $1.3M – $2.0M including a $60K franchise fee.
- Average unit revenue of $535K/year (median $524K).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
- System growing at 22.6% CAGR over 3 years with 164 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Salons by JC unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Salons by JC units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.6M purchase
Total debt
$6.8M
SBA $4.3M + senior + seller note
Overview
About
Franchisees operate full-service hair salons under the Salons by JC brand, providing haircuts, styling, coloring, and related services. Daily operations involve managing 5–15+ stylists, scheduling appointments, maintaining inventory, handling walk-in and appointment-based clients, and enforcing brand standards. Revenue depends heavily on local foot traffic, stylist retention, and competitive pricing in the beauty services market.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Salons by JC presents meaningful profitability risk due to high capital requirements, modest average unit economics, and unprotected territory—requiring strong due diligence on actual franchisee net income and local market saturation before investment.
Score breakdown · what drove the 51 / 100 rating
- 01MINORNo Item 19 (Average Unit Volume) disclosure limits ability to assess profitability; only average revenue provided without net income
- 02MINORHigh initial investment ($1.33M–$2.04M) paired with modest average revenue ($534,950) creates tight margin for error and long payback period
- 03MINORUnprotected territory allows franchisor to open competing units nearby, directly cannibalizing franchisee revenue
- 04MINORRoyalty structure (5.5% of gross sales or $500/month minimum) creates fixed costs that burden low-revenue locations disproportionately
- 05MINORSlow unit growth (10.1% YoY) in mature hair salon sector suggests market saturation and slowing expansion momentum
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
96 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Salons by JC · FDD (2025) PDF