Lemon Tree Hair Salons Franchise FDD, Profits & Costs (2025)
Lemon Tree Hair Salons is a full-service, value-priced hair salon franchise that has been serving families across the United States for over five decades. Established in 1974 on Long Island, New York, Lemon Tree has grown to become the oldest and largest hair salon franchise in the region. The company’s headquarters are located in Parsippany, New Jersey.
The franchise began its expansion in 1976, offering entrepreneurs the opportunity to join a brand committed to providing high-quality salon services at affordable prices.
Lemon Tree salons cater to the entire family, offering a comprehensive range of services, including haircuts, styling, coloring, curling, smoothing, conditioning, and clarifying treatments. This full-service approach distinguishes Lemon Tree from many competitors that may focus solely on haircuts.
Initial Investment
How much does it cost to start a Lemon Tree franchise? It costs on average between $179,000 – $271,000 to start a Lemon Tree franchised facility.
This includes costs for salon build-out, equipment, initial inventory, and early operational expenses. The exact amount varies based on several factors, including the size of the salon, its location, and whether the franchisee opts to lease or purchase the property and equipment.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 |
| Your Training Expenses | $1,000 – $2,000 |
| Premises Deposits | $4,500 – $9,500 |
| Leasehold Improvements, Construction, and/or Remodeling | $63,100 – $120,000 |
| Furniture, Fixtures, and Equipment | $21,000 – $25,000 |
| Exterior & Interior Signage | $7,000 – $10,000 |
| Business Licenses and Permits | $800 – $2,295 |
| Computer Systems | $1,000 – $2,000 |
| E-mail Address | $144 |
| Initial Inventory to Begin Operating | $4,000 – $5,000 |
| Security and Surveillance System | $750 – $1,000 |
| Professional Fees | $3,500 – $5,000 |
| Grand Opening Advertising | $4,000 – $8,000 |
| Insurance | $3,000 – $6,000 |
| Operating Expenses / Additional Funds – 4 months | $30,000 – $40,000 |
| TOTAL | $178,794 – $270,939 |
Average Revenue (AUV)
How much revenue can you make with a Lemon Tree Hair Salons franchise? A Lemon Tree Hair Salons franchised business makes on average $343,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $343,000 yearly revenue for similar hair salon franchises. Below are a few Lemon Tree Hair Salons competitors as a comparison:
Lemon Tree Hair Salons Franchise Disclosure Document
Frequently Asked Questions
How many Lemon Tree Hair Salons locations are there?
As of the latest data, Lemon Tree Hair Salons operates a total of 46 locations across the United States, reflecting a 9.5% growth over the past three years.
What is the total investment required to open a Lemon Tree Hair Salons franchise?
The total investment required to open a Lemon Tree Hair Salons franchise ranges from $179,000 to $271,000.
What are the ongoing fees for a Lemon Tree Hair Salons franchise?
Lemon Tree Hair Salons franchisees are subject to pay a royalty fee set at 6% of gross revenues, which contributes to ongoing support and access to the franchisor’s proprietary systems. Additionally, franchisees are required to pay a fixed weekly advertising fee of $120, allocated toward national and regional marketing efforts to promote the brand and drive customer engagement.
What are the financial requirements to become a Lemon Tree Hair Salons franchisee?
To qualify as a franchisee for Lemon Tree Hair Salons, candidates are required to have a minimum net worth of $270,000 and at least $100,000 in liquid capital. These financial prerequisites are designed to ensure that franchisees possess the necessary resources to effectively establish and operate a Lemon Tree salon, covering initial investments and sustaining operations during the business’s early stages.
How much can a Lemon Tree Hair Salons franchise owner expect to earn?
The average gross sales for a Lemon Tree Hair Salons franchise are approximately $0.34 million per location. Assuming a 15% operating profit margin, $0.34 million yearly revenue can result in $51,000 EBITDA annually.
Who owns Lemon Tree Hair Salons?
Lemon Tree Hair Salons is owned by Jonathan Shaw, who acquired the franchise in 2009. Under his leadership, the brand has expanded significantly, becoming the largest salon franchise on Long Island and extending its reach across the United States.
Disclaimer
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