Townhouse Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Townhouse is a beauty franchise operating nail salons known for bespoke salon design and manicure and pedicure services. Franchisees run the salons, managing nail technicians, appointments, and retail.
FranchiseVerdict summary · 2026
A Townhouse franchise requires a total initial investment of $604K – $760K, including a $40K franchise fee and an ongoing 7.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $604K – $760K
- 52nd pct Personal Care…
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 39th pct Personal Care…
- Units
- 4
- 11th pct Personal Care…
- SBA charge-off
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · 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 $604K – $760K including a $40K franchise fee, 7.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict D (Below average), verdict score 36/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Townhouse Franchising, LLC
- Parent company
- Townhouse Holdings US LLC
- Ultimate parent
- Townhouse Group Limited
- CEO title
- Chief Executive Officer
- Jonathan Millet
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 611 South Dupont Highway, Suite 102, Dover, Delaware 19901
- Auditor
- Baker Tilly US, LLP
- Audited financials
Affiliated brands
- Townhouse Holdings US
- Townhouse Franchising Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jonathan Millet
- Headquarters
- DE
- Founded
- 2025
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 30% above the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Marketing Launch Feenot refundable | $10K | $10K | |
| Real Property, Utility, Security, and Other Deposits | $5K | $15K | |
| Leasehold, Contractor Improvements; Construction Costs and Equipment | $415K | $485K | |
| Computer and Audio Visual Equipment | $14K | $14K | |
| Architects & Engineers Fees | $20K | $40K | |
| Start-up Supplies and Inventory | $25K | $35K | |
| Business Licenses and Permits | $15K | $25K | |
| Insurance | $600 | $1K | |
| Professional Fees | $15K | $20K | |
| Additional Funds (three months) | $45K | $75K | |
| Development Fee (Area Development Agreement)not refundable | $85K | $100K | |
| Total initial investment | $689K | $860K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $604K – $760K
- Middle of category vs category
- Liquid capital req'd
- $45K – $75K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Training fee | $3K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $25K – $35K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Townhouse did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Townhouse unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
21%
Below the 30–60% attractive-franchise band
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
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 9.0% (near the Personal Care & Beauty average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Townhouse Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
No multi-year history disclosed and no opening/closing activity in the last reporting year.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Pre-opening nail-salon franchisor (began franchising 2026) with $0 revenue, 4 company-owned units and 0 franchised. financial_distress flagged with a net loss of -$41,381, but net worth is still positive at $58,619 and this is a brand-new franchisor with limited history. No Item 19.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 36 / 100 verdict
- 01MINORis_pre_opening=true, $0 revenue, net loss -$41,381
- 02MINORfinancial_distress=true but early-stage
- 03MINORNo Item 19 disclosure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Townhouse franchise?
The total investment to open a Townhouse franchise ranges from $604K – $760K, 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 Townhouse franchise owners earn?
Townhouse does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Townhouse 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 Townhouse FDD and qualifies whose outlets they describe.
What is Townhouse's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Townhouse (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 Townhouse franchise locations are there?
As of their most recent FDD filing, Townhouse has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Townhouse a good franchise to buy?
FranchiseVerdict rates Townhouse as a D-grade franchise with a verdict score of 36 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Townhouse, you can request corrections or provide updated information.
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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.