What was the average royalty expense for My Salon Suite locations in the bottom quartile by revenue?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| $393,319 | $6,793 | $121,734 | $125,841 | | 28 | 45.9% | | | | | Expense | | | | 23.5% | | | | | | | | Royalties | $74,805 | $12,631 | $26,792 | $29,453 5.5% | | 26 | 42.6% | | | | | EBITDA* | $708,655 | $124,687 | $278,794 | $302,095 | 56.4% | 28 | 45.9% | | | |Table 3
The following is the average P&L for the Lowest 25% My Salon Suite Franchised Businesses of the 244 reporting Centers based on profitability.
| Bottom Quartile by Revenue (61 locations) | |||||||
|---|---|---|---|---|---|---|---|
| Location Details | Number/ | % that met | |||||
| High | Low | Median | Average | or exceeded average | |||
| % | 100% | 28.6% | 82.8% | 78.3% | 37 | 60.7% | |
| of | |||||||
| Total | |||||||
| Occupancy | |||||||
| Square | 9,732 | 2,880 | 5,320 | 5,421 | 30 | 49.2% | |
| footage | |||||||
| # | 51 | 15 | 27 | 28.1 | 26 | 42.6% | |
| of | |||||||
| Suites | |||||||
| Gross | $653,215 | $20,962 | $340,337 | $343,322 | 100.0% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 78–83)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the average royalty expense for locations in the bottom quartile by revenue was $18,883. This data is based on 61 locations that fall into the bottom quartile based on revenue. The royalty expense is calculated as 5.5% of gross revenue.
In practical terms, this means that if a franchisee's My Salon Suite location falls within the bottom 25% of revenue-generating stores, they can anticipate paying approximately $18,883 in royalties to My Salon Suite. However, it's important to note that this is just an average. The actual royalty expenses for locations in the bottom quartile ranged from a low of $1,153 to a high of $35,927.
Prospective franchisees should consider this figure as a benchmark when evaluating the potential profitability of a My Salon Suite franchise. It's crucial to conduct thorough market research and develop a comprehensive business plan to understand how a location might perform and what royalty expenses could be incurred. Consulting with financial advisors is highly recommended to assess the financial viability of the franchise opportunity.