The Look Salon Suites
Bottom line
- Total investment $940K – $1.2M including a $55K franchise fee.
- Average unit revenue of $317K/year. Estimated payback in 7.8 years.
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 2 units. Early-stage systems carry higher risk but may offer better territory availability.
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 THE LOOK SALON SUITES unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 THE LOOK SALON SUITES units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$952K
on $4.8M purchase
Total debt
$3.8M
SBA $2.4M + senior + seller note
Overview
About
Franchisees operate upscale salon suite rental facilities, leasing individual beauty/wellness stations to independent contractors (estheticians, nail technicians, hairstylists). Daily operations include tenant acquisition and retention, facility maintenance, scheduling, payment processing, and salon suite upkeep to attract premium service providers.
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
Nascent salon suites concept with only 2 units, unverified financial claims, and high capital requirements presents substantial execution and verification risk despite absence of litigation.
Score breakdown · what drove the 70 / 100 rating
- 01MEDOnly 2 operating units with unknown growth trajectory indicates extremely limited system scale and unproven replicability
- 02HIGHItem 19 financial performance data absent (no going concern statement) — cannot independently verify claimed $136,666 average net income or $317,213 revenue figures
- 03MEDHigh initial investment ($940k–$1.19M) paired with only 2 comparable units creates severe due diligence risk and limited peer benchmarking
- 04MINORRoyalty structure (5.5% of gross revenues or $1,000/month minimum) equals ~$1,500–$1,800/month on average unit, consuming 13–16% of stated net income
- 05MINOR10-year franchise term with $55,000 upfront fee suggests franchisor prioritizes front-loaded revenue over unit profitability
- 06HIGHNo disclosed litigation is positive, but minimal unit count makes this statistically unreliable as a safety indicator
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
THE LOOK SALON SUITES · FDD (2024) PDF