INDUSTRY BENCHMARK · 32 SYSTEMS · FISCAL 2023–2025
Are beauty & personal care franchises a good investment?
Across 23 beauty & personal care franchise systems, the median system's exit rate in its latest fiscal year was 2.3%, and its opening rate 11.5%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 6.8%. GREAT CLIPS alone is 44% of the sector's franchised base. Median franchise fee: $50K; median royalty: 6.0%; median total investment: $303K–$547K.
There is no official “beauty & personal care franchise failure rate.” What franchisors must disclose, in the Item 20 outlet tables of the FDD, is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
2.3%
23 systems · latest fiscal year each
6.8%
GREAT CLIPS alone is 44% of the sector's franchised base.
11.5%
303 outlets opened in total
32
FDD filed within 24 months
9,662
at latest fiscal year end
$50K
FDD Item 5
6.0%
FDD Item 6
$303K–$547K
FDD Item 7
28/32
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 32 SYSTEMS · 32 FILINGS · FISCAL 2023–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | GLO Tanning | Strong |
| STRONGEST RECORD | PHENIX SALON SUITES | Strong |
| STRONGEST RECORD | BLO BLOW DRY BAR INC. | Strong |
| WEAKEST FILED RECORD | SMARTSTYLE | Weaker |
| WEAKEST FILED RECORD | COST CUTTERS | Weaker |
| WEAKEST FILED RECORD | ROOSTERS AND ROOSTERS MEN'S GROOMING CENTER | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Beauty & Personal Care franchise questions, answered from the filings
How many beauty & personal care franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 23 beauty & personal care systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2025) was 2.3%; pooled across systems, with no system counting for more than 20% of the weight, it was 6.8%. GREAT CLIPS alone is 44% of the sector's franchised base. Not every exit is a failure: some are retirements or sales.
How much does a beauty & personal care franchise cost?
Across the latest FDD filings of 32 beauty & personal care systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $303K–$547K (Item 7).
What royalty do beauty & personal care franchises charge?
The median ongoing royalty across 32 beauty & personal care franchise systems is 6.0% of gross sales, per Item 6 of their latest FDD filings.
Are beauty & personal care franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2025), the median beauty & personal care system opened new franchised outlets at 11.5% of its starting base and lost 2.3% to exits. For the median system, openings outpaced exits.
What is the healthiest beauty & personal care franchise?
Of the beauty & personal care systems rated from their FDD Item 20 tables, GLO Tanning has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
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