Blo Blow Dry Bar Franchise Costs $309K – $380K (+ 2024 Profits)

Blo Blow Dry Bar, a pioneering force in the beauty franchise sector, emerged as the original blow dry bar in 2007, revolutionizing the industry by focusing solely on blowouts without offering cuts or color. This innovative concept quickly captured the market’s attention, setting a new trend in hair care services. 

Blo Blow Dry Bar began its journey in 2007 and started franchising to expand its innovative concept of blow dry bars, which focus solely on blowouts without offering cuts or colors. The franchise is headquartered in Toronto, Canada.

Blo Blow Dry Bar differentiates itself by providing more than just exceptional blowouts; it offers a comprehensive beauty experience that includes makeup services, bridal packages, and a curated selection of premium retail products. This holistic approach to beauty services, coupled with a focus on providing guests with a confidence-boosting experience at an affordable price, has cemented Blo’s position as a leader in the industry.

Type of Expenditure	Amount
Franchise Fee	$45,000
Real Estate/Rent	$3,000 to $7,500
Security Deposits	$5,000 to $9,500
Utilities	$10,800
Leasehold Improvements	$110,000 to $151,000
Interior Signage & Art	$6,200
Furniture, Fixtures & Equipment	$45,215 to $49,000
Computer System and Software and Training	$2,200
Insurance	$600 to $750
Bar Supplies	$15,015 to $16,999
Initial Inventory	$13,282 to $16,943
Training	$10,419 to $15,876
Grand Opening Promotions, Advertising and Events	$12,500 to $15,000
Licenses and Permits	$500
Legal & Accounting	$2,000 to $5,000
Additional Funds (3 months)	$15,000 to $25,000
TOTAL	$297,000 to $377,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial franchise fee is $45,000, payable in a lump sum when signing the Franchise Agreement. This fee is non-refundable and fully earned upon receipt.

Royalty Fee

Franchisees are required to pay a monthly Royalty Fee equal to 6% of Gross Sales. This payment is due on the 20th day of each month for the previous calendar month’s sales.

Advertising Fund Contribution

Franchisees must contribute the greater of 2% of Gross Sales or $250 each month to the Advertising Fund. This is payable alongside the Royalty Fee.

Brand Maintenance Fee

A monthly Brand Maintenance Fee of $150 is charged to cover costs related to social media, web presence, public relations, and event planning. This fee is also due with the Royalty Fee.

Technology Fee

A monthly Technology Fee, currently set at $50, is payable for the use of designated technology and platforms. This fee is due alongside the Royalty Fee.

Lease or Rent Fee

The estimated lease or rent fee ranges from $3,000 to $7,500 for the first month, varying based on location and specific lease terms.

Transfer Fees

For franchise agreement transfers, a fee of 50% of the current initial franchise fee plus any applicable broker or commission fees is required. For multi-unit development agreement transfers, a $25,000 fee applies.

Renewal Fees

A Successor Agreement Fee, which is 25% of the then-current initial franchise fee, is charged for franchise renewal.

Franchise pros and cons

The Pros:

• Multiple revenue streams: It offers them multiple ways to earn, such as sales of carefully curated retail products, add-on hair services, makeup services, Blo on the Go and Blo Bridal.
• Quality training and coaching: The brand has a detailed training and education program to help franchisees run successful salons and offer the best services to their guests. It offers them training on launching their salons, best practices in operations and management and hiring and training their staff.
• Marketing and public relations:  Robust marketing strategieshelps them access proven marketing tactics, develop community awareness and build local partnerships. Franchisees also get digital marketing resources, a software platform for managing social media accounts and digital reviews, as well as graphic design resources.
• Financing assistance: The franchisor connects its franchise owners with third-party funding partners. Franchisees get funding for startup costs, equipment, inventory and ongoing costs.
• Real estate and construction: The franchisor provides its franchisees with real estate assistance in identifying the right location in terms of demographics and competition. In addition, it helps them with the designs, buildout and lease negotiations.
• Exclusive territory protection: The franchisor grants its franchise owners the right to operate in an exclusive development market. Under the agreement, the franchisor does not authorize any other franchise or competing brand in the agreed-upon area.
• Simple business model: The Blo Blow Dry Bar utilizes small footprints that can fit into the available real estate opportunities. Franchisees can make the most of their markets and scale their investment into multiple locations.

The cons:

• Not a home-based opportunity: The franchise cannot be run from home or a vehicle. Franchisees need to have a fixed office space, a retail facility, or a warehouse.
• Not a part-time business: A Blo Blow Dry Bar franchise is not a part-time or side business.
• No absentee ownership: The brand does not present a passive investment opportunity. Franchisees are actively involved in the day-to-day operations of their salons.
• Competition from other women hair care chains like Dry bar, Salons by JC or Sola Salon Studios to name a few.

How to open a Blo Blow Dry Bar franchise

Opening a Blo Blow Dry Bar franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Blo Blow Dry Bar franchise.

1. Assess Your Financial Readiness

• Ensure you meet the financial requirements, including having sufficient liquid capital and net worth.

2. Explore the Brand and Industry

• Familiarize yourself with Blo Blow Dry Bar’s business model, services, and the beauty industry trends.

3. Submit an Inquiry

• Reach out to Blo Blow Dry Bar through their franchise inquiry process to express your interest.

4. Review Franchise Information

• Carefully go through the detailed franchise information provided by Blo Blow Dry Bar, including the Franchise Disclosure Document (FDD).

5. Attend Discovery Day or Meet the Team

• Participate in a Discovery Day or a similar event to meet the Blo team, understand the brand culture, and ask questions.

6. Secure Financing

• If necessary, secure financing to meet the investment requirements for opening a franchise.

7. Finalize Agreements

• Complete and sign the franchise agreement to officially become a Blo Blow Dry Bar franchise partner.

8. Select a Location

• Work with the Blo team to choose an ideal location for your blow dry bar based on market analysis and site selection criteria.

9. Undergo Training

• Participate in comprehensive training provided by Blo Blow Dry Bar covering operations, service standards, and business management.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.