Smartstyle Franchise Cost, Revenue & Review 2026
- Investment
- $184K – $336K
- Disclosed sales
- not disclosed
- SBA charge-off
- 2.3%
- on 75 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
SmartStyle is a value hair-salon franchise operating inside Walmart stores, offering cuts, color, and styling to shoppers. Franchisees run the in-store salon managing stylists, scheduling, and retail product sales.
FranchiseVerdict summary · 2026
A Smartstyle franchise requires a total initial investment of $184K – $336K, including a $40K franchise fee and an ongoing 4.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 2.3% charge-off rate across 75 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: 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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $184K – $336K
- 19th pct Personal Care…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 1st pct Personal Care…
- Units
- 911
- 60th pct Personal Care…
- SBA charge-off
- 2.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · 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 $184K – $336K including a $40K franchise fee, 4.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 51/100 (higher is better). SBA loan charge-off rate of 2.3% across 75 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -166 franchised outlets in the latest year (5 opened, 171 closed) (Item 20).
- LEGAL16 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Barbers, Hairstyling for Men & Women, Inc.
- Parent company
- Regis Corporation
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Interim President and Chief Executive Officer, Regis Corporation
- Jim Lain
- Incorporated in
- Minnesota
- HQ
- 3701 Wayzata Boulevard, Suite 600, Minneapolis, MN 55416
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $210.1M
- vs $203.0M prior year
Same owner · FDD Item 1, page 8
3 other brands on this site name Regis Corporation as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Jim Lain
- Headquarters
- MN
- Founded
- 1968
- FDD year
- 2025
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 35% below the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $45K |
| Equipment, build-out, other | $130K | $252K |
| Total initial investment | $184K | $336K |
Source: Smartstyle 2025 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
- $184K – $336K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $45K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 4.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $3K |
| Renewal fee | $2K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Smartstyle makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Smartstyle 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 annual revenue, 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.
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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Personal Care & Beauty median of 7.9%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -26.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 medians
How Smartstyle Compares
Category median of published Personal Care & Beauty 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.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 911
- Opened
- 5
- Last reporting year
- Closed
- 171
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 18.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -26.2%
- Net unit change over 3 years
- 3-yr CAGR
- -26.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 89
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
Where the owners are · Item 20 owner list
87 current owners across 11 states; 20 former (terminated, transferred or not renewed) listed separately.
- OK 32
- IN 16
- AR 10
- AZ 7
- MO 5
- SC 5
- CO 4
- OH 3
- TX 3
- KY 1
- MD 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 75
- Loan volume
- $42.1M
- Median loan
- $375K
- 50th percentile
- Charge-off rate
- 2.3%
- on 75 loans · 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)
- 97.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 1
- Typical loan rate
- 7.2%
- avg rate to borrowers
- Franchised industry avg
- 12.1%
- brand beats franchise avg ↓
- Jobs supported
- 3,418
- 8.9 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 18% went to startups / new businesses, 82% to established operators
Franchise vs independent — in beauty salons, franchised businesses charge off at 12.1% vs 18.6% for independents — franchising is associated with 35% lower SBA default risk in this category.
Vintage analysis
Smartstyle charge-off rate by loan vintage
Top lenders financing Smartstyle franchisees
Showing 3 of 17 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Smartstyle from SBA 7(a) FOIA data.
- Principal loss rate
- 0.3%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.17%
- Avg chargeoff amount
- $116K
- Lender concentration
- 32.8%
- Job velocity
- 8.9 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 10.9%
- NAICS 812112
- Jobs supported
- 3,418
Top SBA lendersTop lender holds 33% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 22 | $6.0M | 5.9% |
| 2 | Live Oak Banking Company | 18 | $18.1M | 0.0% |
| 3 | BankUnited, National Association | 6 | $3.1M | 0.0% |
| 4 | The Huntington National Bank | 3 | $2.1M | 0.0% |
| 5 | SouthState Bank, National Association | 3 | $3.2M | N/A |
| 6 | Manufacturers and Traders Trust Company | 2 | $115K | 0.0% |
| 7 | First Merchants Bank | 2 | $869K | N/A |
| 8 | Truist Bank | 2 | $845K | 0.0% |
| 9 | Lake Michigan CU | 2 | $1.4M | 0.0% |
| 10 | Bank of America, National Association | 1 | $439K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 10 | 0 | 0.0% |
| FLFlorida | 8 | 0 | 0.0% |
| OHOhio | 8 | 1 | 20.0% |
| AZArizona | 3 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | 0.0% |
| INIndiana | 3 | 0 | 0.0% |
| MEMaine | 3 | 0 | 0.0% |
| NCNorth Carolina | 3 | 0 | -- |
| NYNew York | 3 | 0 | 0.0% |
| TNTennessee | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 2.3% — 86% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
9 litigation matters (2015-2023) including a 2021 AAA award of $1,015,104.83 against affiliate Supercuts/Regis for FTC Rule and Virginia franchise-law violations plus misrepresentation counterclaims. Financials are very strong (net worth $185.6M, net income $123.5M) but the system is contracting sharply (-26.2%), Item 19 is not disclosed, and financial_distress is flagged.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Multiple AAA arbitrations/lawsuits 2015-2023, mostly franchisee collections matters with counterclaims alleging misrepresentation and state franchise act violations; one 2021 AAA award of $1,015,104.83 against Supercuts/Regis for FTC Rule and Virginia franchise law violations; a trade-secret suit by a POS vendor (ProPoint) against Regis settled via services agreement; a consumer data-privacy class action (Delamarter) settled for $285,000.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
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
Score breakdown · what drove the 51 / 100 verdict
- 01HIGH9 litigation matters incl. $1,015,104.83 franchise-law award, misrepresentation/state-act counterclaims
- 02MINORSharp contraction net growth -26.2%
- 03MEDItem 19 not disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 6 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 10 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 16 |
View Item 3 litigation summary
Multiple AAA arbitrations/lawsuits 2015-2023, mostly franchisee collections matters with counterclaims alleging misrepresentation and state franchise act violations; one 2021 AAA award of $1,015,104.83 against Supercuts/Regis for FTC Rule and Virginia franchise law violations; a trade-secret suit by a POS vendor (ProPoint) against Regis settled via services agreement; a consumer data-privacy class action (Delamarter) settled for $285,000.
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Site selection
- franchisee proposes, Smartstyle approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Item 20 · call current owners
Franchisee Contacts
107 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Smartstyle franchise?
The total investment to open a Smartstyle franchise ranges from $184K – $336K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Smartstyle franchise owners earn?
Smartstyle makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Smartstyle?
Smartstyle is franchised by The Barbers, Hairstyling for Men & Women, Inc.. Its parent company is Regis Corporation. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Smartstyle 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 Smartstyle FDD and qualifies whose outlets they describe.
What is Smartstyle's franchise failure rate?
Based on SBA 7(a) loan data, Smartstyle has a charge-off rate of 2.3% across 75 loans, meaning 2.3% 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 Smartstyle franchise locations are there?
As of their most recent FDD filing, Smartstyle has 911 total units in the United States, including 911 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is Smartstyle a good franchise to buy?
FranchiseVerdict rates Smartstyle as a B-grade franchise with a verdict score of 51 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.