INDUSTRY BENCHMARK · 23 SYSTEMS · FISCAL 2016–2025
Are beauty & personal care franchises a good investment?
Across 23 beauty & personal care franchise systems (8,854 franchised units), franchisees exited at an annualized rate of 5.4% in their latest FDD Item 20 filings, while new outlets opened at 3.1%. The median buy-in: a $45K franchise fee, 6.0% royalty, and a total investment of $367K–$604K.
People search for a “beauty & personal care franchise failure rate,” but no such official number exists. 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. That annualized exit rate is the honest, measurable proxy: it slightly overstates failure (some exits are retirements or sales) and slightly understates distress (struggling units often sell before they close), but unlike survey numbers it comes from legally mandated disclosures.
5.4%
501 exits / 9,333 units at start
3.1%
289 outlets opened
23
verified FDD extractions
8,854
at latest fiscal year end
$45K
FDD Item 5
6.0%
FDD Item 6
$367K–$604K
FDD Item 7
19/23
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 23 SYSTEMS · 23 FILINGS · FISCAL 2016–2025
| Signal | Brand | Index | Grade |
|---|---|---|---|
| STRONGEST | THE NOW | Proven & strong | |
| STRONGEST | My Salon Suite | Proven & strong | |
| STRONGEST | Amazing Lash Studio | Proven & strong | |
| WEAKEST | Eyemazy | Too new to judge | |
| WEAKEST | Hammer & Nails (Unit) | Too new to judge | |
| WEAKEST | Waxxpot | Too new to judge |
HEALTH INDEX: SOURCED 0–100 SCORE FROM EACH BRAND'S OWN FDD ITEM 20 · METHODOLOGY
Beauty & Personal Care franchise questions, answered from the filings
What percentage of beauty & personal care franchises fail?
There is no official failure rate, but FDD Item 20 filings show the honest proxy: across 23 beauty & personal care franchise systems, 501 franchised outlets left their systems (terminations, non-renewals, and "ceased operations — other") out of 9,333 open at the start of the year — an annualized exit rate of 5.4% in fiscal 2016–2025. Not every exit is a failure (some are retirements or sales), but it is the measurable floor.
How much does a beauty & personal care franchise cost?
Across the latest FDD filings of 23 beauty & personal care systems, the median initial franchise fee is $45K (Item 5) and the median total investment range is $367K–$604K (Item 7).
What royalty do beauty & personal care franchises charge?
The median ongoing royalty across 23 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 the latest Item 20 filings, beauty & personal care systems opened new franchised outlets at an annualized rate of 3.1% while franchisees exited at 5.4%. Exits currently outpace openings in this industry — scrutinize individual systems closely.
What is the healthiest beauty & personal care franchise?
By the Watch Desk verdict system (computed from FDD Item 20 with an evidence gate), the strongest verified beauty & personal care system tracked is THE NOW.
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