Knockouts Franchise FDD, Profits & Costs (2025)
Knockouts Haircuts & Grooming is a men’s grooming salon franchise that combines traditional barbering with modern salon services. Founded in 2002 by Thomas and Karin Friday in Dallas, Texas, the first location opened in Addison, Texas, in 2003.
Headquartered in Irving, Texas, Knockouts began franchising in 2004 and has expanded to 55 locations across the United States. The salons offer a range of services tailored for men, including haircuts, beard grooming, and various massage therapies.
The unique boxing and mixed martial arts theme sets Knockouts apart from competitors, featuring décor such as faux boxing ring posts, brick walls, and sports memorabilia. Each grooming station is equipped with flat-screen televisions, enhancing the customer experience.
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Initial Investment
How much does it cost to start a Knockouts franchise? It costs on average between $245,000 – $388,000 to start a Knockouts franchised salon.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the size and design of the salon, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $39,500 |
| Leasehold improvements | $70,000 to $150,000 |
| Lease payments and other rental expenses (first three months) | $6,000 to $15,000 |
| Store-In-A-Box Package | $65,000 – $75,000 |
| Freight and shipping charges, and state sales tax | $1,550 – $5,650 |
| Signage | $4,000 to $7,500 |
| Project Management Services Fee | $20,000 to $21,500 |
| Architectural/Engineering | $5,000 to $12,000 |
| Travel, lodging and meals for initial training | $1,000 to $2,500 |
| Business Supplies (stationery, business cards, brochures, paper and other materials) | $1,000 to $2,000 |
| Business licenses, permits, etc. (for first year) | $1,250 to $2,000 |
| Telephone and utility deposits and expenses | $1,000 to $2,500 |
| Insurance deposits and premiums (for first year) | $1,000 to $1,800 |
| Grand opening advertising | $10,000 |
| Computer hardware and software | $500 to $1,500 |
| Additional operating funds – three months | $18,000 to $40,000 |
| TOTAL | $244,800 to $388,450 |
Competitors
Below are a few Knockouts competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Knockouts Franchise Disclosure Document
Frequently Asked Questions
How many Knockouts locations are there?
As of the latest data, Knockouts Haircuts & Grooming has 55 locations, all of which are franchise-owned.
What is the total investment required to open a Knockouts franchise?
The total investment required to open a Knockouts franchise ranges from $245,000 to $388,000.
What are the ongoing fees for a Knockouts franchise?
The ongoing fees for a Knockouts Haircuts & Grooming franchise include a royalty fee of 6% of gross sales. In addition to the royalty fee, franchisees are required to contribute to a marketing/advertising fund, which is typically set at 2% of gross sales.
What are the financial requirements to become a Knockouts franchisee?
To become a Knockouts Haircuts & Grooming franchisee, the minimum net worth requirement is $500,000, and the minimum liquid capital required is $150,000.
These financial requirements ensure that franchisees have the necessary resources to support the startup costs and initial operations of the business, providing a solid foundation for success within the franchise system.
Who owns Knockouts?
Knockouts franchise is owned by Knockouts Holdings, LLC.
Disclaimer
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