Sephora Franchise FDD, Profits & Costs (2025)
Sephora, founded in France in 1970 by Dominique Mandonnaud, is a global leader in prestige beauty retail.
Known for its unique open-sell environment, Sephora offers a wide array of products, including cosmetics, skincare, fragrance, and beauty tools from carefully curated brands, as well as its own line, the Sephora Collection.
The brand emphasizes inclusivity, innovation, and a commitment to providing a premium beauty shopping experience. Today, it operates over 2,700 stores in 35 countries, with more than 500 stores in the Americas alone, and is owned by LVMH Moët Hennessy Louis Vuitton.
Sephora first launched in the U.S. in 1998, opening a store in New York City’s SoHo neighborhood. Its U.S. headquarters is located in San Francisco, with additional corporate offices in New York, Mexico City, Montreal, Toronto, and São Paulo.
However, it’s important to note that Sephora does not offer franchising opportunities; it operates its retail network independently.
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Initial Investment
How much does it cost to start a Sephora franchise? Sephora does not offer franchise opportunities, as all of its locations are company-owned.
Therefore, it is not possible to start a Sephora franchise, and there is no associated cost for franchising with the company.
In comparison, for example, a The Vitamin Shoppe franchised store requires an investment upfront of $529,000 up to $977,000.
Average Revenue (AUV)
How much revenue can you make with a Sephora franchise? Since Sephora does not franchise its stores and all locations are company-owned, Sephora does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.
For example, a The Vitamin Shoppe franchised store makes on average $1,508,000 in revenue per year.
Frequently Asked Questions
How many Sephora locations are there?
Sephora operates over 2,300 stores globally across 33 countries. While these are primarily company-owned locations, it does not offer franchise opportunities.
The North American market, in particular, has over 430 stores, all managed directly by Sephora rather than franchisees. This operational model ensures consistent branding and customer experience across all.
What is the total investment required to open a Sephora franchise?
Sephora does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Sephora franchise.
However, the total investment required to open a franchised store similar to a Sephora franchise ranges from $61,000 to $1,231,000.
What are the ongoing fees for a Sephora franchise?
Since Sephora does not offer franchises and all stores are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.
Yet, similar beauty franchises in the industry charge an average of 6% in royalty fees and 6% in advertising fees ( e.g. MiniLuxe Studios).
What are the financial requirements to become a Sephora franchisee?
All Sephora locations are company-owned, and the brand does not offer opportunities for independent ownership or franchising. Therefore, it is not possible to meet any financial requirements or apply to become a franchisee with Sephora.
For beauty franchises similar to Sephora, the average minimum net worth required to start a franchise can range from $500,000 to $1,500,000. The liquid capital requirement typically falls between $100,000 and $500,000.
These figures vary greatly depending on the brand, size, location, and type of franchise. High-end beauty retailers or established brands may demand higher financial thresholds, while smaller or niche beauty franchises might have lower requirements.
How much can a Sephora franchise owner expect to earn?
Since Sephora is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Sephora franchise.
Now, assuming the average gross sales for a beauty franchise similar to a Sephora franchise of $571,000 per store. And assuming a 15% operating profit margin, $571,000 yearly revenue would result in about $85,650 operating profit per year.
Who owns Sephora?
Sephora is owned by LVMH Moët Hennessy Louis Vuitton, a global luxury goods conglomerate. LVMH acquired Sephora in 1997, and the brand operates as part of its extensive portfolio of high-end fashion, beauty, and lifestyle companies.
Disclaimer
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